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 10).

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

	Three Months Ended
	May 2, 2015						May 3, 2014
	Net Income		Shares		EPS		Net Income		Shares		EPS

Basic EPS	$	2,535		13,581	$	0.19	$	7,710		13,472	$	0.57
Incremental shares from the assumed exercise of outstanding stock options		—		24				—		68
Incremental shares from the assumed lapse of restrictions on restricted stock awards		—		19				—		35
Diluted EPS	$	2,535		13,624	$	0.19	$	7,710		13,575	$	0.57

In addition to performance-based RSUs, for the three months ended May 2, 2015 and May 3, 2014 stock options and unvested restricted stock totaling 801,502 and 149,052 shares, respectively, were excluded from the calculation of Diluted EPS as their effect would have been antidilutive.

During the three months ended May 2, 2015 and May 3, 2014 the Company paid cash dividends totaling $2,761,000 (or $0.20 per share) and $2,735,000 (or $0.20 per share), respectively. On May 28, 2015 the Company declared a quarterly cash dividend of $0.20 per share payable on July 23, 2015, which is projected to total approximately $2,770,000.