Note 9 - Net Income Per Share

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 9 – Net Income Per Share:

The Company’s basic net income per share is computed based on the weighted average number of shares of common stock outstanding for the period. Diluted net income per share includes the effect of the Company’s outstanding stock options, stock appreciation rights, unvested shares of restricted stock and unvested performance shares, if the inclusion of these items is dilutive.

The following table presents a reconciliation of basic and diluted net income per share for the three and nine months ended September 30, 2020 and 2019:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net income used in the computation of basic and diluted net income per share (in thousands)	$	9,944	$	3,921	$	28,485	$	9,078
Weighted average shares outstanding - basic		15,084,300		14,947,552		15,041,738		14,942,565
Dilutive common stock equivalents		626,822		319,298		319,297		329,722
Weighted average shares outstanding - diluted		15,711,122		15,266,850		15,361,035		15,272,287
Net income per share:
Basic	$	0.66	$	0.26	$	1.89	$	0.61
Diluted	$	0.63	$	0.26	$	1.85	$	0.59

Awards to purchase 152,110 and 568,471 shares of common stock with weighted average exercise prices of $23.26 and $19.02 per share were outstanding during the three months ended September 30, 2020 and 2019, respectively, but were not included in the computation of diluted net income per share because the awards’ exercise prices were greater than the average market price of the common shares.

Awards to purchase 348,077 and 408,854 shares of common stock with weighted average exercise prices of $19.68 and $20.07 per share were outstanding during the nine months ended September 30, 2020 and 2019, respectively, but were not included in the computation of diluted net income per share because the awards’ exercise prices were greater than the average market price of the common shares.