EARNINGS PER SHARE

12 Months Ended

Sep. 30, 2016

3. EARNINGS PER SHARE:

Basic earnings per share available to common shareholders is calculated by dividing net income less preferred stock dividend requirements by the weighted average common shares outstanding for each period. Diluted earnings per share available to common shareholders is calculated by dividing income from operations less preferred stock dividend requirements (when anti‑dilutive) by the sum of the weighted average common shares outstanding and the weighted average dilutive options, using the treasury stock method.

Shares of common stock underlying outstanding stock options and restricted stock unit awards at September 2016 and September 2015 which were anti‑dilutive were not included in the computations of diluted earnings per share. There were no anti-dilutive awards at September 2016 and 2015.


	For Fiscal Years
	2016		2015
	Basic		Basic
Weighted average common shares outstanding		621,435		619,295
Net income	$	5,980,673	$	6,361,278
Deduct: convertible preferred stock dividends		(160,360)		(195,105)
Net income available to common shareholders	$	5,820,313	$	6,166,173
Net earnings per share available to common shareholders	$	9.37	$	9.96


	For Fiscal Years
	2016		2015
	Diluted		Diluted
Weighted average common shares outstanding		621,435		619,295
Weighted average of net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock(1)		92,462		120,938
Weighted average number of shares outstanding		713,897		740,233
Net income	$	5,980,673	$	6,361,278
Deduct: convertible preferred stock dividends (2)		—		—
Net income available to common shareholders	$	5,980,673	$	6,361,278
Net earnings per share available to common shareholders	$	8.38	$	8.59

(1)

Diluted earnings per share calculation includes all stock options, convertible preferred stock, and restricted stock units deemed to be dilutive. See Note 2 regarding the conversion of the convertible preferred stock during fiscal 2016.

(2)

Diluted earnings per share calculation excludes dividend payments for convertible preferred stock deemed to be dilutive, as those amounts are assumed to have been converted to common stock of the Company.