Net Earnings per Share

6 Months Ended

Jun. 30, 2013

Net Earnings per Share

Net Earnings per Share

2.             Net Earnings per Share

We compute basic net earnings per share using the weighted average number of shares outstanding.  Diluted net earnings per share include the effect of common stock equivalents, if any, for each period.  Diluted net earnings per share amounts assume the conversion, exercise or issuance of all potential common stock instruments unless their effect is anti-dilutive.  The following table computes basic and diluted net earnings per share:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
	(in thousands, except per share data)
Net earnings	$	2,930		$	3,219		$	4,038		$	5,380
Basic:
Weighted average common shares outstanding	18,919			18,064			18,919			18,064
Weighted average common shares of restricted stock that has not vested	(1,319		)	(1,011		)	(1,353		)	(1,052		)
Shares used in the computation of basic net earnings per share	17,600			17,053			17,566			17,012
Net earnings per share — basic	$	0.17		$	0.19		$	0.23		$	0.32
Diluted:
Shares used in the computation of basic net earnings per share	17,600			17,053			17,566			17,012
Employee and non-employee director stock options	48			113			40			105
Restricted stock that has not yet vested	455			279			380			266
Shares used in the computation of diluted net earnings per share	18,103			17,445			17,986			17,383
Net earnings per share - diluted	$	0.16		$	0.18		$	0.22		$	0.31

We excluded the following restricted stock grants that have not yet vested from the computation of diluted earnings per share as their effect would have been anti-dilutive:

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2013	2012	2013	2012
Restricted common stock that has not yet vested	83,000	27,000	326,500	27,000