NOTE

– Earnings Per Share:

The Company’s basic net income per share is computed based on the weighted average number of shares of common stock outstanding for the period. Diluted net income per share includes the effect of the Company’s outstanding stock options, stock appreciation rights, unvested shares of restricted stock and unvested performance shares, if the inclusion of these items is dilutive.

The following table presents a reconciliation of basic and diluted net income per share for the years ended

December 31, 2019

2018

and

2017

		Years Ended December 31,
	2019		2018		2017
Net earnings used in the computation of basic and diluted earnings per share (in thousands)	$	12,066	$	16,975	$	15,022

Weighted average shares outstanding - basic		14,945,165		14,937,786		14,510,156
Dilutive common stock equivalents		321,243		534,347		608,612
Total weighted average shares outstanding - diluted		15,266,408		15,472,133		15,118,768
Net income per share:
Basic	$	0.81	$	1.14	$	1.04
Diluted	$	0.79	$	1.10	$	0.99

Potential shares of common stock of

448,298,

322,000

and

37,450

for the years ended

December 31, 2019

2018

and

2017

were excluded from the computation of diluted net income per share as their inclusion would have been anti-dilutive because the awards’ exercise prices were greater than the average market price of the common shares.