Earnings Per Share

9 Months Ended

Mar. 31, 2016

EARNINGS PER SHARE

Basic earnings per share (EPS) of common stock are based on the weighted-average number of common shares outstanding during each period. Diluted earnings per share of common stock include 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 and non-vested shares 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 nine months ended March 31, 2016 and 2015, net income as reported for each respective period is divided by the fully diluted weighted-average number of shares outstanding:



	Three Months Ended		Nine Months Ended
	March 31,		March 31,
(in thousands)	2016	2015	2016	2015

Basic shares	7,622	7,436	7,568	7,408

Potential common shares:
Stock options	162	237	157	252
Long-term incentive plan	49	21	43	14
Non-vested shares	3	8	3	7
	214	266	203	273

Diluted shares	7,836	7,702	7,771	7,681

Anti-dilutive shares	26	49	26	-