Net Income Per Share

9 Months Ended

Dec. 31, 2022

In accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 260 (“Earnings Per Share”) basic net income per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income per common share includes the dilutive effect of potential restricted stock and the effects of the potential conversion of preferred shares, calculated using the treasury stock method. Unvested restricted stock and convertible preferred shares issued by the Company represent the only dilutive effect reflected in the diluted weighted average shares outstanding.

The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share computations for the periods presented (in thousands, except for per share amounts):


	Three Months Ended December 31,				Nine Months Ended December 31,
	2022		2021		2022		2021
Net income (loss) (numerator):
Net income	$	(19)	$	4,257	$	5,335	$	15,034

Shares (denominator):
Weighted average number of common shares outstanding used in basic computation	20,301		20,208		20,257		20,165
Common shares issuable upon vesting of restricted stock	—		111		72		190
Common shares issuable upon conversion of preferred shares	—		10		10		10
Shares used in diluted computation	20,301		20,329		20,339		20,365

Net income (loss) per common share:

Basic	$	(0.00)	$	0.21	$	0.26	$	0.75
Diluted	$	(0.00)	$	0.21	$	0.26	$	0.74

For the three and nine months ended December 31, 2022 and 2021, 243,604 and 205,219 shares of common restricted stock, respectively, were excluded from the computations of diluted net income per common share, as their inclusion would have had an anti-dilutive effect on diluted net income per common share. For the three months ended December 31, 2022, 71 shares issuable upon vesting of restricted stock and 10 shares issuable upon conversion of preferred shares were excluded from the computation of diluted net income per common share, as their inclusion would have had an anti-dilutive effect on diluted net income per common share.