Earnings (loss) per Share

3 Months Ended

Jun. 30, 2020

Earnings (loss) per Share

Earnings (loss) per Share

(3) Earnings (Loss) per Share

Basic earnings (loss) per share available to Virtusa common stockholders (“EPS”) is computed by dividing net income, less any dividends and accretion of issuance cost on the Series A Convertible Preferred Stock by the weighted average number of shares of common stock outstanding for the period. In computing diluted EPS, the Company adjusts the numerator used in the basic EPS computation, subject to anti-dilution requirements, to add back the dividends (declared or cumulative undeclared) applicable to the Series A Convertible Preferred Stock. Such add-back would also include any adjustments to equity in the period to accrete the Series A Convertible Preferred Stock to its redemption price. The Company adjusts the denominator used in the basic EPS computation, subject to anti-dilution requirements, to include the dilution from potential shares resulting from the issuance of restricted stock units, unvested restricted stock and stock options along with the conversion of the Series A Convertible Preferred Stock to common stock. The following table sets forth the computation of basic and diluted EPS for the periods set forth below:

The components of basic earnings (loss) per share are as follows:

	Three Months Ended
	June 30,
	2020		2019
Numerators:
Net income available to Virtusa stockholders	$	894	$	5,834
Less: Series A Convertible Preferred Stock dividends and accretion		(1,087)		(1,087)
Net income (loss) available to Virtusa common stockholders	$	(193)	$	4,747
Denominators:
Basic weighted average common shares outstanding		30,168,174		30,167,910
Basic earnings (loss) per share available to Virtusa common stockholders	$	(0.01)	$	0.16

The components of diluted earnings (loss) per share are as follows:

	Three Months Ended
	June 30,
	2020		2019
Numerators:
Net income (loss) available to Virtusa common stockholders	$	(193)	$	4,747
Add : Series A Convertible Preferred Stock dividends and accretion		—		—
Net income (loss) available to Virtusa common stockholders and assumed conversion	$	(193)	$	4,747
Denominators:
Basic weighted average common shares outstanding		30,168,174		30,167,910
Dilutive effect of Series A Convertible Preferred Stock if converted		—		—
Dilutive effect of employee stock options and unvested restricted stock awards and restricted stock units		—		766,501
Weighted average shares—diluted		30,168,174		30,934,411
Diluted earnings (loss) per share available to Virtusa common stockholders	$	(0.01)	$	0.15

During the three months ended June 30, 2020 and 2019, unvested restricted stock awards and unvested restricted stock units issuable for, and options to purchase 1,354,558 and zero shares of common stock, respectively, were excluded from the calculations of diluted earnings per share as their effect would have been anti-dilutive.  For the three months ended June 30, 2020 and 2019, all of the 3,000,000 shares of Series A Convertible Preferred Stock were excluded in the calculations of diluted earnings per share as their effect would have been anti-dilutive.