Earnings Per Share

9 Months Ended

Jun. 30, 2022

5. Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similarly to basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if potentially dilutive common shares had been issued. In the case of a net loss, diluted earnings per share is calculated in the same manner as basic EPS.

For the three and nine months ended June 30, 2022, options for 204,000 and 176,000 weighted average shares, respectively, were excluded from the diluted EPS calculations because they were anti-dilutive. For the three and nine months ended June 30, 2021, options for 25,000 and 103,000 weighted average shares, respectively, were excluded from the diluted EPS calculations because they were anti-dilutive. These shares could become dilutive in the future.

A reconciliation of the components of the basic and diluted EPS calculations follows (in thousands, except per share amounts):


	Three Months Ended June 30,				Nine Months Ended June 30,
	2022		2021		2022		2021
Numerator:
Net income	$	10,222	$	369	$	13,184	$	842

Denominator:
Weighted-average shares used to compute basic EPS		13,889		14,176		14,042		14,163
Common stock equivalents (1)		137		197		178		129
Weighted-average shares used to compute diluted EPS		14,026		14,373		14,220		14,292

Income per share:
Net income per basic share	$	0.74	$	0.03	$	0.94	$	0.06
Net income per diluted share	$	0.73	$	0.03	$	0.93	$	0.06

(1)

The number of common stock equivalents is calculated using the treasury method and the average market price during the period.