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 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 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 three months ended December 31, 2018 and 2017, 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)	2018	2017	2018	2017

Basic shares	7,885	7,847	7,880	7,839

Potential common shares:
Stock options	20	73	33	75
Long-term incentive plan	-	14	-	15
Non-vested shares	12	3	9	2
	32	90	42	92

Diluted shares	7,917	7,937	7,922	7,931

Anti-dilutive shares	141	-	115	-

Cash dividends declared per common share were $0.22 and $0.44 for the quarters and six months ended December 31, 2018 and 2017.