Net Income per Common Share

6 Months Ended

Jun. 30, 2022

Net Income per Common Share

Net Income per Common Share

19. Net Income per Common Share

Basic net income per common share is calculated based on the weighted average number of common shares outstanding for the period. Diluted earnings per common share are calculated based on the assumption that stock options and other dilutive securities outstanding, which have an exercise price less than the average market price of the Company’s common shares during the period, would have been exercised on the later of the beginning of the period or the date granted and that the funds obtained from the exercise were used to purchase common shares at the average market price during the period. All the Company’s RSUs and DSUs are considered to be dilutive in periods with net income.

The effect of the Company’s dilutive securities is calculated using the treasury stock method and only those instruments that result in a reduction in net income per common share are included in the calculation. Options to purchase 2.3 million and 2.6 million shares of common stock at weighted average exercise prices of $4.49 and $6.92 were outstanding as of June 30, 2022 and 2021, respectively, but were not included in the computation of diluted weighted average common shares outstanding, as the exercise price of the options exceeded the average price of the Company’s common stock during the reporting period, and therefore are anti-dilutive.

Basic and diluted net income per common share is calculated as follows:

	For the three months ended				For the six months ended
	June 30,				June 30,
	2022		2021		2022		2021
Numerator:
Net income (in thousands)	$	2,673	$	1,283	$	6,692	$	3,810
Denominator:
Basic weighted average shares of common stock outstanding		88,343,992		74,485,672		88,341,398		74,445,058
Dilutive effect of share-based awards		447,560		501,887		305,451		423,129
Diluted weighted average common shares outstanding		88,791,552		74,987,559		88,646,849		74,868,187
Basic and diluted net income per common share	$	0.03	$	0.02	$	0.08	$	0.05