Note 8 - Earnings Per Share

3 Months Ended

Mar. 31, 2016

Note 8. 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.

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.

The Company’s PSAs outstanding at March 31, 2016 did not meet the related performance conditions and therefore were excluded from the calculation of diluted EPS. Approximately 0.2 million weighted-average shares were excluded from the calculation of EPS because they were anti-dilutive for each of the three-month periods ended March 31, 2016 and 2015.

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

	Three Months Ended March 31 ,
	2016		201 5
Net Income	$	9,687	$	7,900

Weighted-average number of basic shares outstanding during the period		18,994		19,450
Dilutive effect of stock options and RSUs		299		388
Weighted-average number of diluted shares outstanding during the period		19,293		19,838

Basic earnings per share	$	0.51	$	0.41
Diluted earnings per share	$	0.50	$	0.40