Earnings per share (“EPS”) is computed by dividing reported net income by the weighted-average number of shares outstanding. Diluted EPS considers the potential dilution that could occur if common stock equivalents were exercised or converted into stock. The difference between the basic and diluted weighted-average equivalent shares with respect to the Company’s EPS calculation was due entirely to the assumed exercise of stock options and the vesting and settlement of RSUs and PSAs. PSAs are included in the computation of diluted shares only to the extent that the underlying performance conditions (i) are satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were also the end of the applicable performance period and the result would be dilutive under the treasury stock method.

As of September 30, 2020, the PSAs granted during the year ended December 31, 2018 met the related performance conditions for the initial performance period and were included in the calculation of diluted EPS. However, the PSAs granted during the year ended December 31, 2019 and during the nine months ended September 30, 2020 have not yet completed their initial two-year performance period and therefore were excluded in the calculation of diluted EPS. For the three months ended September 30, 2020 there were 452 weighted-average shares excluded from the calculation of EPS because they were anti-dilutive. For the nine months ended September 30, 2020, there were 19,386 weighted-average shares were excluded because they were anti-dilutive. The anti-dilutive shares were associated with RSUs. There were no shares excluded for the three and nine months ended September 30, 2019.

The dilutive effect of stock options, RSUs, and PSAs for each period reported is summarized below:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Net Income	$	17,871	$	19,630	$	42,139	$	49,559

Weighted-average number of basic shares outstanding during the period		18,853		18,799		18,841		18,810
Dilutive effect of stock options, RSUs, and performance shares		233		370		270		398
Weighted-average number of diluted shares outstanding during the period		19,086		19,169		19,111		19,208

Basic earnings per share	$	0.95	$	1.04	$	2.24	$	2.63
Diluted earnings per share	$	0.94	$	1.02	$	2.20	$	2.58