Note 10 - Earnings Per Share

9 Months Ended

Sep. 30, 2015

Note 10. 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 and the vesting and settlement of RSUs.

Performance awards 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.

The Company’s performance awards outstanding at September 30, 2015 did not meet the related performance conditions and therefore were excluded from the calculation of diluted EPS. For each of the three-month periods ended September 30, 2015 and 2014, approximately

0.2 million

weighted-average shares were excluded from the calculation of EPS because they were anti-dilutive. For each of the nine-month periods ended September 30, 2015 and 2014, approximately 0.2 million weighted-average shares were excluded from the calculation of EPS because they were anti-dilutive.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		201 4		201 5		201 4
Net Income	$	11,545	$	11,553	$	28,619	$	31,267

Weighted-average number of basic shares outstanding during the period		19,316		19,450		19,413		19,682
Dilutive effect of stock options and RSUs		240		263		330		387
Weighted-average number of diluted shares outstanding during the period		19,556		19,713		19,743		20,069

Basic earnings per share	$	0.60	$	0.59	$	1.47	$	1.59
Diluted earnings per share	$	0.59	$	0.59	$	1.45	$	1.56