Earnings Per Share

3 Months Ended

Mar. 31, 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 March 31, 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 three months ended March 31, 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 March 31, 2022, there were 53,819 weighted-average shares excluded from the calculation of EPS because they were anti-dilutive. For the three months ended March 31, 2021, there were 10,327 weighted-average shares excluded 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,
	2022		2021
Net Income	$	17,862	$	18,351

Weighted-average number of basic shares outstanding during the period		18,795		18,885
Dilutive effect of stock options, RSUs, and performance shares		217		233
Weighted-average number of diluted shares outstanding during the period		19,012		19,118

Basic earnings per share	$	0.95	$	0.97
Diluted earnings per share	$	0.94	$	0.96