Earnings Per Share

3 Months Ended

Mar. 31, 2022

11.	EARNINGS PER SHARE

Basic earnings per share is based on the weighted average number of shares of common stock outstanding for the period. Diluted earnings per share is computed in a similar manner to basic earnings per share after assuming the issuance of shares of common stock for all potentially dilutive shares of restricted stock whether or not they are vested.

In accordance with ASC Topic 260, “Earnings Per Share,” the two-class method determines earnings for each class of common stock and participating securities according to an earnings allocation formula that adjusts the income available to common stockholders for dividends or dividend equivalents and participation rights in undistributed earnings. Certain unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method. For the time periods in the table below, we did not have any participating securities.

The following is a reconciliation of net income and the shares of common stock used in the computation of basic and diluted earnings per share:

	Three Months Ended March 31,
	2022		2021
Numerator:
Net income	$	91,930	$	64,616
Denominator:
Basic weighted average shares outstanding		58,014		57,740
Dilutive effect of unvested restricted stock		205		654
Diluted weighted average shares outstanding		58,219		58,394
Earnings per share:
Basic	$	1.58	$	1.12
Diluted	$	1.58	$	1.11