Earnings Per Share

9 Months Ended

Mar. 31, 2020

11. 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						Nine Months Ended
	March 31,						March 31,
	2020		2019		2020		2019
Numerator
Net (loss) income	$	(2,889)	$	672	$	(12,070)	$	(1,724)
Income allocated to participating securities	—		(3)		—		—
Net (loss) income available to common stockholders	$	(2,889)	$	669	$	(12,070)	$	(1,724)
Denominator
Weighted average common shares outstanding – basic	34,149,561		33,600,148		34,029,296		33,510,368

Effect of dilutive restricted stock units⁽¹⁾	—		339,929		—		—
Effect of performance-based restricted stock awards⁽²⁾	—		295,048		—		—
Effect of employee stock purchase plan⁽³⁾	—		6,307		—		—
Weighted average common shares outstanding – diluted	34,149,561		34,241,432		34,029,296		33,510,368

Earnings per common share – basic	$	(0.08)	$	0.02	$	(0.35)	$	(0.05)
Earnings per common share – diluted	$	(0.08)	$	0.02	$	(0.35)	$	(0.05)

(1)At March 31, 2020 and 2019, 332,798 and 354,176 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 for the three and nine months ended March 31, 2020, and the nine months ended March 31, 2019, because those shares are anti-dilutive.

(2)At March 31, 2020 and 2019, 660,982 and 754,331 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 for the three and nine months ended March 31, 2020, and the nine months ended March 31, 2019, because those shares are anti-dilutive.

(3)At March 31, 2020 and 2019, the Company included the number of shares that would be issued under its employee stock purchase plan based on the aggregate expected amount of withholdings and the average unrecognized compensation expense as assumed proceeds. The effect of these shares has been excluded from the calculation of diluted loss per share for the three and nine months ended March 31, 2020, and the nine months ended March 31, 2019, 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 March 31, 2019, undistributed earnings allocated to participating securities were based on 172,839 time-based restricted stock awards. During the three and nine months ended March 31, 2020, and the nine months ended March 31, 2019 there were no undistributed earnings allocated to participating securities due to the net losses.