Note 3 - Net Income Per Common Share

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 3 – Net Income per Common Share

Basic net income per share is computed based on the weighted-average number of common shares outstanding. Diluted net income per share is computed based on the weighted-average number of common shares outstanding, increased by the number of additional shares that would have been outstanding had potentially dilutive common shares been issued and reduced by the number of shares the Company could have repurchased from the proceeds from issuance of the potentially dilutive shares. Potentially dilutive shares of common stock include stock options and other stock-based awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan. Performance stock units are excluded from the calculation of dilutive potential common shares until the performance conditions have been satisfied. For the three months ended September 30, 2022 and 2021, 210,443 and 184,920 anti-dilutive options were excluded from the calculation of diluted weighted average shares outstanding, respectively. For the nine months ended September 30, 2022 and 2021, 202,901 and 61,400 anti-dilutive options were excluded from the calculation of diluted weighted average shares outstanding, respectively.

The table below sets forth the computation of basic and diluted net income per share:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands, except share and per share amounts)	2022		2021		2022		2021
Net income	$	3,951	$	4,835	$	11,603	$	21,462
Basic - weighted-average shares outstanding:		27,505,097		27,713,229		27,512,057		27,638,611
Effect of dilutive securities:
Employee stock options and other		3,120		16,876		10,677		69,173
Diluted - weighted-average shares outstanding:		27,508,217		27,730,105		27,522,734		27,707,784
Net income per share:
Basic	$	0.14	$	0.17	$	0.42	$	0.78
Diluted	$	0.14	$	0.17	$	0.42	$	0.77