Earnings (loss) per Share

12 Months Ended

Dec. 31, 2019

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:

	Year Ended December 31,
	2019		2018		2017
Denominator:
Weighted average common shares for basic earnings per share		16,433,644		16,389,876		16,269,611
Effect of dilutive securities		119,222		133,723		—
Denominator for diluted earnings per share		16,552,866		16,523,599		16,269,611

Stock awards to purchase 369,325, 298,406 and 808,391 shares of common stock were not included in the diluted net income (loss) per share calculation for 2019, 2018 and 2017, respectively, as their inclusion would have been anti-dilutive. In 2017 and for the first quarter of 2018, the Company calculated earnings per share using the “two-class” method, whereby unvested share-based payment awards that contained non-forfeitable rights to dividends or dividend equivalents were considered “participating securities”, as discussed in Note 9, and therefore, these participating securities were treated as a separate class in computing earnings per share.