2.	EARNINGS PER SHARE (“EPS”) AND CASH DIVIDENDS

Basic net income (or earnings) per share (“Basic EPS”) is computed by dividing net income by the weighted average number of common shares outstanding, excluding restricted stock awards for which the restrictions have not lapsed. Diluted net income (or earnings) per share (“Diluted EPS”) is computed by dividing net income by the weighted average number of common shares outstanding, after giving effect to the potential dilution, if applicable, from the assumed exercise of outstanding stock options and from the assumed lapse of restrictions on restricted stock awards. Common shares issuable in connection with the award of performance-based restricted stock units (“RSUs”) are excluded from the calculation of EPS until the RSUs’ performance conditions are achieved and the shares in respect of the RSUs become issuable (see Note 9).

The following table summarizes the Basic EPS and Diluted EPS calculations (in thousands, except per share amounts):

	Three Months Ended December 31,
	2013						2012
	Net Income		Shares		EPS		Net Income		Shares		EPS

Basic EPS	$	4,259		13,372	$	0.32	$	3,842		13,189	$	0.29
Incremental shares from the assumed exercise of outstanding stock options		—		120				—		101
Incremental shares from the assumed lapse of restrictions on restricted stock awards		—		71				—		55
Diluted EPS	$	4,259		13,563	$	0.31	$	3,842		13,345	$	0.29

In addition to performance-based RSUs, for the three months ended December 31, 2013 and 2012, stock options and unvested restricted stock totaling 84,496 and 300,605 shares, respectively, were excluded from the calculation of Diluted EPS as their effect would have been antidilutive.

During the three months ended December 31, 2013 and 2012 the Company paid cash dividends totaling $2,565,000 (or $0.1875 per share) and $2,359,000 (or $0.175 per share), respectively. On January 24, 2014 the Company declared a quarterly cash dividend of $0.20 per share payable on March 28, 2014, which we project will total approximately $2,740,000.