7.	EARNINGS PER SHARE

Basic earnings per share are computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share are computed by dividing net earnings by the sum of (a) the weighted average number of shares of common stock outstanding during the period and (b) the potential common stock equivalents outstanding during the period. Stock options are the only common stock equivalents; and the number of dilutive options is computed using the treasury stock method.

The following table sets forth the calculation of basic and diluted earnings per share:

	Fiscal Year
(Amounts in thousands, except per share amounts)	2017		2016		2015

Net earnings	$	9,283	$	18,029	$	20,043

Weighted average common shares outstanding for basic EPS		20,235		20,347		20,912
Net effect of dilutive options		4		5		74
Weighted average shares outstanding for diluted EPS		20,239		20,352		20,986

Basic earnings per share	$	0.46	$	0.89	$	0.96
Diluted earnings per share	$	0.46	$	0.89	$	0.96

Potentially dilutive stock options, which were not included in the computation of diluted earnings per share because either the effect would have been antidilutive or the options’ exercise prices were greater than the average market price of the common stock, were

884,905,

919,509

and

192,063

for the

2017,

2016

and

2015

fiscal years, respectively.