Basic and Diluted Earnings per Share

12 Months Ended

Dec. 31, 2019

(11) Basic and Diluted Earnings per Share

Potential shares of common stock are included in the diluted earnings per share calculation when dilutive. Potential shares of common stock, consisting of common stock issuable upon exercise of outstanding stock options, are calculated using the treasury stock method.

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data) for the periods indicated:

	Years Ended December 31,
	2019		2018		2017
					(as adjusted)
Numerator:
Net income	$	34,355	$	22,501	$	18,195

Denominator:
Weighted average common shares of class A common stock		8,221		9,340		9,409
Weighted average common shares of class B common stock		2,035		2,035		2,035
Total weighted average common stock shares outstanding		10,256		11,375		11,444
Effect of dilutive securities:
Employee stock options		72		37		103
Adjusted weighted average shares		10,328		11,412		11,547

Earnings per share:
Basic earnings per share	$	3.35	$	1.98	$	1.59
Diluted earnings per share	$	3.33	$	1.97	$	1.58

For the years ended December 31, 2019, 2018, and 2017, stock options issued under the 2013 Equity Plan to purchase a weighted average of approximately 933,000, 896,000, and 398,000 shares of class A common stock, respectively, were excluded from the diluted earnings per share calculation because their impact would have been anti-dilutive.