Earnings Per Share

9 Months Ended

Sep. 30, 2020

The following table sets forth the computation of the basic and diluted earnings per share for the three and nine months ended September 30, 2019 and 2020 (in thousands, except per share data):


	Three months ended September 30,				Nine months ended September 30,
	2019		2020		2019		2020
Numerator for basic and diluted earnings per share:
Net income	$	577	$	5,525	$	11,964	$	7,725
Less: Earnings allocated to unvested restricted stock	(3)		(14)		(52)		(23)
Income attributable to common stockholders	$	574	$	5,511	$	11,912	$	7,702

Denominator:
Denominator for basic earnings per common share - weighted average shares outstanding	17,737		17,895		17,917		17,853
Effect of dilutive securities:
Stock options	31		34		34		39
Convertible Notes	—		3		—		1
Denominator for diluted earnings per common share - weighted average shares outstanding	17,768		17,932		17,951		17,893

Basic earnings per common share:	$	0.03	$	0.31	$	0.66	$	0.43
Diluted earnings per common share:	$	0.03	$	0.31	$	0.66	$	0.43

For the three and nine months ended September 30, 2019 and 2020, there were 3,000 and 1,000 shares, respectively that would have been issued upon conversion of our Convertible Notes as a result of the application under the if-converted method prescribed by the FASB ASC 260, Earnings Per Share for the fully diluted weighted average shares outstanding and the corresponding calculation of fully diluted earnings per share.

For the three months ended September 30, 2019 and 2020, there were 900,856 and 765,722 stock options, respectively and 974,290 and 848,513 for the nine months ended September 30, 2019 and 2020, respectively, excluded from the computation of diluted earnings per share because the inclusion of such stock options would result in an antidilutive effect. For both the three and nine months ended September 30, 2020, 359,137 performance awards have been excluded from the computation of diluted earnings per share as the performance criteria have not been met.