The Company’s 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, 2021, the PSAs granted during the year ended December 31, 2019 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, 2020 and during the nine months ended September 30, 2021 have not yet completed their initial two-year performance period and therefore were excluded in the calculation of diluted EPS. For the three and nine months ended September 30, 2021, there were no weighted-average shares excluded from the calculation of EPS because they were anti-dilutive. For the three months and nine months ended September 30, 2020, there were 452 and 19,386 weighted-average shares that were excluded because they were anti-dilutive. The anti-dilutive shares in both years were associated with RSUs.

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,
	2021		2020		2021		2020
Net Income	$	20,390	$	17,871	$	59,053	$	42,139

Weighted-average number of basic shares outstanding during the period		18,865		18,853		18,864		18,841
Dilutive effect of stock options, RSUs, and performance shares		196		233		213		270
Weighted-average number of diluted shares outstanding during the period		19,061		19,086		19,077		19,111

Basic earnings per share	$	1.08	$	0.95	$	3.13	$	2.24
Diluted earnings per share	$	1.07	$	0.94	$	3.10	$	2.20