Earnings Per Share

6 Months Ended

Jun. 30, 2016

7. Earnings Per Share

Basic earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is calculated by dividing net income available to common stockholders by the weighted average common stock outstanding plus stock equivalents that would arise from the assumed exercise of stock options, the conversion of warrants, and the delivery of stock underlying restricted stock units using the treasury stock method. There is no difference, for any of the periods presented, in the amount of net income available to common stockholders used in the computation of basic and diluted earnings per share.

The Company had stock options and warrants outstanding of 2,866,031 as of June 30, 2016 that were not included in the computation of diluted earnings per share because they were not assumed to be exercised under the treasury stock method or because they were anti-dilutive. As of June 30, 2015, all stock options, warrants, and restricted stock units were included in the computation of diluted earnings per share.

The following table reconciles basic weighted average common stock outstanding to diluted weighted average common stock outstanding (in thousands):



	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2016	2015	2016	2015
Basic weighted average common stock outstanding	38,319	38,170	38,302	38,090
Effect of dilutive securities
Employee stock options	3	93	6	109
Warrants	29	1,220	42	1,180
Restricted stock units	17	41	21	53
Diluted weighted average common stock outstanding	38,368	39,524	38,371	39,432