10. Earnings Per Share

The following table presents a reconciliation of the numerators and denominators used in the basic and diluted earnings per common share computations (in thousands except share and per share amounts):



	Year Ended June 30,
	2018			2017			2016
Numerator
Net income (loss)	$	1,712		$	(1,792	)	$	(56,024	)
Income allocated to participating securities	(19		)	—			—
Net income (loss) available to common stockholders	$	1,693		$	(1,792	)	$	(56,024	)
Denominator
Weighted average common shares outstanding — basic	33,145,140			32,373,709			32,537,621
Effect of dilutive stock options⁽¹⁾	15,039			—			—
Effect of dilutive restricted stock units⁽²⁾	335,869			—			—
Effect of performance-based restricted stock awards ⁽³⁾	118,212			—			—
Weighted average common shares outstanding — diluted	33,614,260			32,373,709			32,537,621

Earnings per common share — basic	$	0.05		$	(0.06	)	$	(1.72	)
Earnings per common share — diluted	$	0.05		$	(0.06	)	$	(1.72	)


(1)	At June 30, 2018, 2017, and 2016; 22,321, 78,201, and 606,879 stock options, respectively, were outstanding. The effect of the shares that would be issued upon exercise of these options has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive.


(2)	At June 30, 2018, 2017, and 2016; 335,869, 349,430 and 304,816 additional shares of common stock, respectively, were issuable upon the settlement of outstanding restricted stock units. The effect of the shares that would be issued upon settlement of these restricted stock units has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive.


(3)	At June 30, 2018 and 2017, 531,178 and 318,584, respectively, of performance-based restricted stock awards were outstanding. The effect of the shares that would be issued upon vesting of these awards has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive.

Unvested time-based restricted stock awards that contain nonforfeitable rights to dividends are participating securities and included in the computation of earnings per share pursuant to the two-class method. Under this method, earnings attributable to the Company are allocated between common stockholders and the participating awards, as if the awards were a second class of stock. During periods of net income, the calculation of earnings per share excludes the income attributable to participating securities in the numerator and the dilutive impact of these securities from the denominator. In the event of a net loss, undistributed earnings are not allocated to participating securities and the denominator excludes the dilutive impact of these securities as they do not share in the losses of the Company. During the year ended June 30, 2018, undistributed earnings allocated to participating securities were based on 382,476 unvested time-based restricted stock awards.