Earnings Per Share

9 Months Ended

Sep. 30, 2022

NOTE 15 – EARNINGS PER SHARE

The Company’s earnings per share (“EPS”) is computed by dividing reported net income by the weighted-average number of shares outstanding. Diluted EPS considers the potential dilution that could occur if common stock equivalents of stock options, RSUs, and PSAs were exercised or converted into stock. PSAs are included in the computation of diluted shares only to the extent that the underlying performance conditions: (i) are satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related performance period and the result would be dilutive under the treasury stock method.

As of September 30, 2022, the PSAs granted during the year ended December 31, 2020 met the related performance conditions for the initial performance period and were included in the calculation of diluted EPS. However, the PSAs granted during the year ended December 31, 2021 and during the nine months ended September 30, 2022 have not yet completed their initial two-year performance period and therefore were excluded in the calculation of diluted EPS. For the three months ended September 30, 2022 and 2021 and for the nine months ended September 30, 2021, there were no weighted-average shares excluded from the calculation of EPS because they were anti-dilutive. For the nine months ended September 30, 2022, there were 4,746 shares that were excluded because they were anti-dilutive. The anti-dilutive shares were associated with RSUs.

The dilutive effect of stock options, RSUs, and PSAs for each period reported is summarized below:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Net Income	$	19,105	$	20,390	$	55,364	$	59,053

Weighted-average number of basic shares outstanding during the period		18,826		18,865		18,806		18,864
Dilutive effect of stock options, RSUs, and performance shares		183		196		195		213
Weighted-average number of diluted shares outstanding during the period		19,009		19,061		19,001		19,077

Basic earnings per share	$	1.01	$	1.08	$	2.94	$	3.13
Diluted earnings per share	$	1.01	$	1.07	$	2.91	$	3.10