Basic earnings per share is computed by dividing net earnings available to common shareholders by the weighted-average common shares outstanding for the period. Diluted earnings per share reflects the maximum potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and would then share in the net earnings of the Company. Dilutive share equivalents include stock-based awards issued to employees.

Stock options granted by the Company are treated as potential shares in computing earnings per share. Diluted shares outstanding include the dilutive effect of in-the-money awards which is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount that the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax impact that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares.

The computations of basic and diluted earnings per share for the Company were as follows for the:

	Three Months Ended March 31,
	2020		2019
Numerator:
Net earnings (basic)	$	6,278	$	5,337
Net earnings (diluted)	$	6,278	$	5,337

Denominator:
Weighted-average shares outstanding (basic)		11,432,391		11,815,966
Effect of dilutive securities:
Common stock equivalent shares from stock options		—		43,492
Weighted-average shares outstanding (diluted)⁽¹⁾		11,432,391		11,859,458

Net earnings per share
Basic	$	0.55	$	0.45
Diluted	$	0.55	$	0.45

(1) Outstanding options and the closing price of the Company's stock as of March 31, 2020 had an anti-dilutive effect on the weighted-average common shares outstanding for the quarter ended March 31, 2020; therefore, the effect of their conversion has been excluded from the calculation of the diluted weighted-average common shares outstanding for the period. The diluted EPS has been calculated using the basic weighted-average shares outstanding in order to comply with GAAP.