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):



	Three Months Ended September 30,
	2018			2017
Numerator
Net loss	$	(2,888	)	$	(1,977	)
Income allocated to participating securities	—			—
Net loss available to common stockholders	$	(2,888	)	$	(1,977	)
Denominator
Weighted average common shares outstanding – basic	33,425,065			32,968,712
Effect of dilutive stock options⁽¹⁾	—			—
Effect of dilutive restricted stock units⁽²⁾	—			—
Effect of performance-based restricted stock awards⁽³⁾	—			—
Weighted average common shares outstanding – diluted	33,425,065			32,968,712

Earnings per common share – basic and diluted	$	(0.09	)	$	(0.06	)


(1)	At September 30, 2018 and 2017, 14,234 and 39,381 stock options were outstanding, respectively. 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 September 30, 2018 and 2017, 354,176 and 335,869 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 September 30, 2018 and 2017, 740,671 and 562,315 performance-based restricted stock awards, respectively, were outstanding. The effect of the potential 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 three months ended September 30, 2018 and 2017, there were no undistributed earnings allocated to participating securities due to the net losses.