Note 8. Earnings Per Share

Basic 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 were exercised or converted into stock. The difference between the basic and diluted weighted-average equivalent shares with respect to the Company's EPS calculation is due entirely to the assumed exercise of stock options, the vesting of restricted stock and the vesting of restricted stock units ("RSUs"). The dilutive effect of stock options, restricted stock and RSU awards for each period reported is summarized below:


	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Net Income	$	8,963	$	7,201	$	16,689	$	12,621

Weighted-average number of basic shares outstanding during the period		19,688		19,351		19,634		19,317
Dilutive effect of stock options, restricted stock and RSUs		159		217		215		220

Weighted-average number of diluted shares outstanding during the period		19,847		19,568		19,849		19,537

Basic earnings per share	$	0.46	$	0.37	$	0.85	$	0.65

Diluted earnings per share	$	0.45	$	0.37	$	0.84	$	0.65