Earnings (loss) per Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Earnings (loss) per Share

2. Earnings (loss) per Share

Basic earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted earnings (loss) per share include the dilutive effects of options and unvested restricted stock awards and units.

The following reconciles the denominator used in the calculation of diluted earnings (loss) per share:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Denominator:
Weighted average common shares for basic earnings (loss) per share		16,274,663		16,302,870		16,260,862		16,388,892
Effect of dilutive securities		—		—		—		—
Weighted average common shares for diluted earnings (loss) per share		16,274,663		16,302,870		16,260,862		16,388,892

The Company calculates earnings per share using the “two-class” method, whereby unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are “participating securities”, as discussed in Note 7, and therefore, these participating securities are treated as a separate class in computing earnings per share. Stock awards to purchase 667,239 and 736,968 shares of common stock were not included in the diluted net income (loss) per share calculation for the three months ended September 30, 2017 and 2016, respectively, and 683,847 and 772,012 shares for the nine months ended September 30, 2017 and 2016, respectively, as their inclusion would have been anti-dilutive.