Net Income Per Share

12 Months Ended

Dec. 31, 2019

NET INCOME PER SHARE

Basic Earnings Per Share ("EPS") is calculated by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if options or other securities with features that could result in the issuance of common stock were exercised or converted to common stock. The following table reconciles the numerator and the denominator of the basic and diluted net income per share computation (in thousands, except for per share data):



	For the Year Ended December 31,
	2019				2018					2017
	Basic		Diluted		Basic		Diluted			Basic		Diluted
Numerator:
Net income applicable to common shareholders	$	20,928	$	20,928	$	65,031	$	65,031		$	176,220	$	176,220
Denominator:
Weighted-average shares outstanding: Basic	31,546		31,546		34,491		34,491			34,605		34,605
Dilutive effect of stock options, RSUs and convertible securities			239				816					1,174
Weighted-average shares outstanding: Diluted			31,785				35,307					35,779
Earnings Per Share:
Net income: Basic	$	0.66	0.66		$	1.89	1.89			$	5.09	5.09
Dilutive effect of stock options, RSUs and convertible securities			—				(0.05		)			(0.16		)
Net income: Diluted			$	0.66			$	1.84				$	4.93

Certain shares of common stock issuable upon the exercise or conversion of certain securities have been excluded from our computation of earnings per share because the strike price or conversion rate, as applicable, of such securities was greater than the average market price of our common stock for the years ended December 31, 2019, 2018 and 2017, as

applicable, and, as a result, the effect of such exercise or conversion would have been anti-dilutive. Set forth below are the securities and the weighted average number of shares of common stock underlying such securities that were excluded from our computation of earnings per share for the periods presented (in thousands):



	For the Year Ended December 31,
	2019	2018	2017
Restricted stock units and stock options	128	25	19
Convertible securities	5,495	—	—
Warrants	5,495	4,404	—
Total	11,118	4,429	19