EARNINGS PER SHARE

9 Months Ended

Dec. 31, 2022

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 EPS because the holder has voting rights and shares in non-forfeitable dividends during the vesting period. Diluted EPS is computed by dividing net income 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 nine months ended December 31, 2022 and 2021, there were no stock options excluded in computing diluted EPS.

In November 2022, the Company’s Board of Directors adopted a stock repurchase program (the “November 2022 repurchase program”). Under the November 2022 repurchase program, the Company was authorized to repurchase up to $2.5 million of the Company’s outstanding shares of common stock, in the open market, based on prevailing market prices, or in privately negotiated transactions, over a period beginning on November 28, 2022 and continuing until the earlier of the completion of the authorized level of repurchases or May 28, 2023, depending upon market conditions. As of December 31, 2022, the Company had repurchased 10,797 shares at a total cost of $81,000 under the November 2022 repurchase program at an average price of $7.51 per share.

In March 2022, the Company’s Board of Directors adopted a stock repurchase program (the “March 2022 repurchase program”). Under the March 2022 repurchase program, the Company was authorized to 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 privately negotiated transactions, over a period beginning on March 21, 2022 and continuing until the earlier of the completion of the authorized level of repurchases or September 9, 2022, depending upon market conditions. As of September 30, 2022, the Company had completed the March 2022 repurchase program as 718,734 shares were repurchased at an average price of $6.96 per share and at a total cost of $5.0 million. At September 30, 2022, all 718,734 shares repurchased under the March 2022 repurchase program have been retired.

In June 2021, the Company’s Board of Directors adopted a stock repurchase program (the “June 2021 repurchase program”) authorizing the repurchase of up to $5.0 million of the Company’s outstanding shares of common stock, 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 nine months. As of December 31, 2021, the Company had repurchased 249,908 shares totaling $1.7 million at an average price of $6.89 per share under the June 2021 repurchase program.

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

	Three Months Ended December 31,				Nine Months Ended December 31,
	2022		2021		2022		2021
Basic EPS computation:
Numerator-net income	$	5,240,000	$	5,510,000	$	15,086,000	$	17,695,000
Denominator-weighted average common shares outstanding		21,504,903		22,166,130		21,717,959		22,229,832
Basic EPS	$	0.24	$	0.25	$	0.69	$	0.80
Diluted EPS computation:
Numerator-net income	$	5,240,000	$	5,510,000	$	15,086,000	$	17,695,000
Denominator-weighted average common shares outstanding		21,504,903		22,166,130		21,717,959		22,229,832
Effect of dilutive stock options		8,714		10,990		8,593		12,203
Weighted average common shares and common stock equivalents		21,513,617		22,177,120		21,726,552		22,242,035
Diluted EPS	$	0.24	$	0.25	$	0.69	$	0.80