EARNINGS PER SHARE (EPS)

9 Months Ended

Sep. 29, 2017

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)

4.EARNINGS PER SHARE (EPS)

Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding. Diluted EPS is computed by dividing net income by the weighted-average number of common shares outstanding and dilutive potential common shares for the period. Potential common shares include the weighted-average dilutive effects of outstanding stock options and restricted stock awards using the treasury stock method.

The following table sets forth the number of weighted-average common shares outstanding used to compute basic and diluted EPS:

	Three months ended				Nine months ended
	September 29,		September 30,		September 29,		September 30,
	2017		2016		2017		2016
Net income	$	2,886,000	$	2,462,000	$	8,839,000	$	6,730,000
Weighted-average common shares outstanding		8,730,000		8,308,000		8,580,000		8,181,000
Effect of dilutive stock options and restricted stock awards		518,000		412,000		558,000		335,000
Weighted-average common shares outstanding-diluted		9,248,000		8,720,000		9,138,000		8,516,000
Earnings per share:
Basic	$	0.33	$	0.30	$	1.03	$	0.82
Diluted	$	0.31	$	0.28	$	0.97	$	0.79

For the three and nine months ended September 29, 2017, 137,000 and 89,000 options were excluded from the calculation of dilutive potential common shares, as compared to 280,000 and 330,000 options for the three and nine months ended September 30, 2016.  These options were not included in the computation of dilutive potential common shares because the assumed proceeds per share exceeded the average market price per share for the 2017 and 2016 periods. Accordingly, the inclusion of these options would have been anti-dilutive.