Earnings Per Share

3 Months Ended

Sep. 30, 2017

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 quarter ended September 30, 2017 and 2016, net income as reported for each respective period is divided by the fully diluted weighted-average number of shares outstanding:



	Three Months Ended
	September 30,
(in thousands)	2017	2016

Basic shares	7,830	7,725

Potential common shares:
Stock options	89	111
Long-term incentive plan	16	-
Non-vested shares	2	2
	107	113

Diluted shares	7,937	7,838

Anti-dilutive shares	-	24

Cash dividends declared per common share were $0.22 and $0.20 for the quarters ended September 30, 2017 and 2016, respectively.