EARNINGS PER SHARE

3 Months Ended

Jun. 30, 2021

EARNINGS PER SHARE

EARNINGS PER SHARE

4.      EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed by dividing net income or loss applicable to common stock by the weighted average number of common shares outstanding during the period, without considering any dilutive items. Nonvested shares of restricted stock are included in the computation of basic earnings per share because the holder has voting rights and shares in non-forfeitable dividends during the vesting period. Diluted EPS is computed by dividing net income or loss applicable to common stock by the weighted average number of common shares and common stock equivalents for items that are dilutive, net of shares assumed to be repurchased using the treasury stock method at the average share price for the Company’s common stock during the period. Common stock equivalents arise from the assumed exercise of outstanding stock options. For the three months ended June 30, 2021 and 2020, there were no stock options excluded in computing diluted EPS.

In June 2021, the Company’s Board of Directors adopted a stock repurchase program (the “repurchase program”). Under the repurchase program, the Company may repurchase up to $5.0 million of the Company’s outstanding shares of common stock, in the open market based on prevailing market prices, or in private negotiated transactions, during the period from June 21, 2021 until the earlier of the completion of the repurchase of $5.0 million of the Company’s common stock or the next six months, depending on market conditions. As of June 30, 2021, the Company had repurchased 73,367 shares under the repurchase program totaling $493,000 at an average price of $6.71 per share. As of June 30, 2020, the Company had repurchased the 500,000 shares authorized for repurchase under the expired February 2020 repurchase program at an average price of $4.89 per share.

The following table presents a reconciliation of the components used to compute basic and diluted EPS for the periods indicated:

	Three Months Ended June 30,
	2021		2020
Basic EPS computation:
Numerator-net income	$	5,755,000	$	480,000
Denominator-weighted average common shares outstanding		22,344,785		22,256,665
Basic EPS	$	0.26	$	0.02
Diluted EPS computation:
Numerator-net income	$	5,755,000	$	480,000
Denominator-weighted average common shares outstanding		22,344,785		22,256,665
Effect of dilutive stock options		13,979		19,638
Weighted average common shares and common stock equivalents		22,358,764		22,276,303
Diluted EPS	$	0.26	$	0.02