Earnings Per Share

9 Months Ended

Dec. 31, 2015

3. Earnings Per Share

Basic earnings per share is calculated by dividing the reported net income for the period by the weighted average number of shares of common stock outstanding. Diluted earnings per share includes the effect of dilutive options and other share awards. Basic and diluted earnings per share have been computed as follows:


	Three months ended December 31,				Nine months ended December 31,
	2015		2014		2015		2014
Numerator for earnings per share – net income	$	2,726,901	$	3,769,556	$	9,653,703	$	13,008,445

Denominator:
Denominator for basic earnings per share – weighted average shares		7,622,981		12,197,125		7,620,423		12,188,778
Effect of dilutive securities:
Stock options and other share awards		148,404		178,214		157,141		183,220

Denominator for diluted earnings per share		7,771,385		12,375,339		7,777,564		12,371,998

Earnings per share:
Basic	$	0.36	$	0.31	$	1.27	$	1.07

Diluted	$	0.35	$	0.30	$	1.24	$	1.05

For the three months ended December 31, 2015 and 2014, potential shares of common stock from stock options totaling 165,000 and 130,870, respectively, were not included in the diluted earnings per share calculation because their effect is anti-dilutive. For the nine months ended December 31, 2015 and 2014, potential shares of common stock from stock options totaling 160,091 and 83,036, respectively, were not included in the diluted earnings per share calculation because their effect is anti-dilutive. Please see Note 10 – “Tender Offer” for information regarding the decrease of the weighted average shares for the three and nine months ended December 31, 2015.