Note 8 - Earnings Per Share

3 Months Ended

Mar. 31, 2016

8.	EARNINGS PER SHARE

Net income per share of class A common stock and class B common stock is computed using the two-class method. Basic net income per share is computed by allocating undistributed earnings to common shares and using the weighted-average number of common shares outstanding during the period.

Diluted net income per share is computed using the weighted-average number of common shares and, if dilutive, the potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and vesting of restricted stock. The dilutive effect of outstanding stock options is reflected in diluted earnings per share by application of the treasury stock method.

The liquidation rights and the rights upon the consummation of an extraordinary transaction are the same for the holders of class A common stock and class B common stock. Other than share distributions and liquidation rights, the amount of any dividend or other distribution payable on each share of class A common stock will be equal to one-sixth (1/6

) of the amount of any such dividend or other distribution payable on each share of class B common stock. As a result, the undistributed earnings for each period are allocated based on the contractual participation rights of the class A and class B common stock as if the earnings for the period had been distributed.

At March 31, 2016 and 2015, the Company had 568,697 and 477,427 options of class A shares and 87,836 and 44,202 options of class B shares, respectively, which have been excluded from the diluted net income per share computation because the exercise price exceeds the fair market value

	For the Three Months Ended March 31, 2016						For the Three Months Ended March 31, 2015
	Class A Common Stock			Class B Common Stock			Class A Common Stock			Class B Common Stock
	(In thousands, except per share data)
Numerator for net income per share - basic:
Net income	$	2,568		$	2,605		$	1,738		$	1,742
Allocation of distributed and undistributed income to unvested restricted stock shareholders		(21	)		(23	)		(12	)		(10	)
Net income attributable to common shareholders	$	2,547		$	2,582		$	1,726		$	1,732
Denominator for net income per share - basic:
Weighted average common shares outstanding - basic		20,710			3,489			20,792			3,478
Net income per share – basic	$	0.12		$	0.74		$	0.08		$	0.50
Numerator for net income per share - diluted:
Net income attributable to common shareholders for basic computation	$	2,547		$	2,582		$	1,726		$	1,732
Denominator for net income per share - diluted:
Weighted average common shares outstanding - basic		20,710			3,489			20,792			3,478
Weighted average effect of dilutive securities – stock options		238			42			241			46
Denominator for diluted earnings per share – adjusted weighted average shares		20,948			3,531			21,033			3,524
Net income per share – diluted	$	0.12		$	0.73		$	0.08		$	0.49