Earnings Per Share

3 Months Ended

Mar. 31, 2023

NOTE 13 – 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 March 31, 2023, the PSAs granted during the year ended December 31, 2021 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, 2022 and during the three months ended March 31, 2023 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 March 31, 2023 and 2022, there were 10,199 and 53,819 weighted-average shares excluded from the calculation of EPS because they were anti-dilutive. The anti-dilutive shares in both years were associated with RSUs.

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


	Three Months Ended
	March 31,
	2023		2022
Net Income	$	16,398	$	17,862

Weighted-average number of basic shares outstanding during the period		18,779		18,795
Dilutive effect of stock options, RSUs, and performance shares		170		217
Weighted-average number of diluted shares outstanding during the period		18,949		19,012

Basic earnings per share	$	0.87	$	0.95
Diluted earnings per share	$	0.87	$	0.94