Earnings Per Share

6 Months Ended

Dec. 31, 2015

EARNINGS PER SHARE

Basic earnings per share (EPS) of common stock is based on the weighted-average number of common shares outstanding during each period. Diluted earnings per share of common stock includes the dilutive effect of potential common shares outstanding. The Company’s potential common shares outstanding are stock options, shares associated with the long-term management incentive compensation plan and non-vested shares. The Company calculates the dilutive effect of outstanding options using the treasury stock method. Anti-dilutive shares are not included in the computation of diluted EPS when their exercise price is greater than the average closing market price of the common shares. The Company calculates the dilutive effect of shares related to the long-term management incentive compensation plan based on the number of shares, if any, that would be issuable if the end of the fiscal period were the end of the contingency period.

In computing EPS for the quarters and six months ended December 31, 2015 and 2014, net income as reported for each respective period is divided by the fully diluted weighted average number of shares outstanding:



	Three Months Ended		Six Months Ended
	December 31,		December 31,
(in thousands)	2015	2014	2015	2014

Basic shares	7,575	7,417	7,541	7,395

Potential common shares:
Stock options	201	255	189	259
Long-term incentive plan	42	15	41	12
Non-vested shares	3	7	3	6
	246	277	233	277

Diluted shares	7,821	7,694	7,774	7,672

Anti-dilutive shares	26	-	26	-