Earnings per Share (EPS)

9 Months Ended

Sep. 30, 2019

The Company accounts for earnings per share in accordance with ASC 260 and related guidance, which requires two calculations of earnings per share (EPS) to be disclosed: basic EPS and diluted EPS. Under ASC Subtopic 260-10-45, as of January 1, 2009 unvested awards of share-based payments with rights to receive dividends or dividend equivalents, such as restricted stock, are considered participating securities for purposes of calculating EPS. Under the two-class method, a portion of net income is allocated to these participating securities and therefore is excluded from the calculation of EPS allocated to common stock, as shown in the table below.

The numerator for basic and diluted earnings per share is net earnings attributable to shareholders reduced by dividends attributable to unvested shares. The denominator for basic earnings per share is the weighted average number of common stock outstanding during the period. The denominator for diluted earnings per share is weighted average shares outstanding adjusted for the effect of dilutive outstanding stock options, performance share awards and restricted stock awards.

The following is a reconciliation of the weighted average basic number of common shares outstanding to the diluted number of common and common stock equivalent shares outstanding and the calculation of earnings per share using the two-class method:



	Three Months Ended						Nine Months Ended
	September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
Net income	$	6,451		$	14,090		$	16,546		$	31,251
Less: earnings attributable to unvested shares	(34		)	(57		)	(72		)	(112		)
Net income available to participating common shareholders	$	6,417		$	14,033		$	16,474		$	31,139
Weighted average number of participating common and potential common shares outstanding:
Basic number of participating common shares outstanding	19,583,316			19,525,284			19,575,764			19,511,097
Dilutive effect of stock equivalents	201,729			313,678			164,498			279,473
Diluted number of weighted average participating common shares outstanding	19,785,045			19,838,962			19,740,262			19,790,570
Earnings per participating common share:
Earnings per participating common share—Basic	$	0.33		$	0.72		$	0.84		$	1.60
Earnings per participating common share—Diluted	$	0.32		$	0.71		$	0.83		$	1.57

Total outstanding options, performance share awards and unvested restricted stock not included in the calculation of diluted earnings per share as the effect would be anti-dilutive	966,943			431,751			982,049			465,956