Earnings Per Share

3 Months Ended

Mar. 31, 2020

(5) Earnings Per Share

The Company reports its earnings per share under the two-class method. Under this method, potentially dilutive securities are excluded from the calculation of diluted earnings per share (as well as their related impact on the net income available to common shareholders) when their impact on net income available to common shareholders is anti-dilutive.

Potentially dilutive securities for the three months ended March 31, 2020, included all outstanding stock options and RSUs, which were included in the calculation of diluted earnings per share for these periods. The potentially dilutive effect of outstanding warrants and the underlying shares exercisable under the Company’s $287.5 million of 1.00% Convertible Senior Notes due 2020 (the “Convertible Notes”) were excluded from diluted shares outstanding as the exercise price exceeded the average market price of the Company’s common shares. The effect of the convertible note hedge, described in Note 9. Long-Term Debt was also excluded as the effect is anti-dilutive.

The allocated details of our Earnings per Share are as follows:


		Three Months Ended March 31,

		2020		2019
	(in thousands, excluding share and per share amounts)
Net income available to common shareholders		$	5,755	$	4,319
Weighted average common basic shares outstanding (for basic calculation)		44,729,824		46,223,764
Dilutive effect of outstanding common stock options and RSUs		1,011,437		411,269
Weighted average common dilutive shares outstanding (for diluted calculation)		45,741,261		46,635,033

Net income per common share - basic		$	0.13	$	0.09
Net income per common share - diluted		$	0.13	$	0.09

The computations of diluted earnings per share for the three months ended March 31, 2020 and 2019, exclude approximately 200,000 and 60,000, respectively, potentially dilutive common shares because the effect of including these shares in the computation would have been antidilutive. In addition, the computation of diluted earnings per share for the three months ended March 31, 2019 excludes approximately 233,000 weighted average dilutive shares that are contingently issuable, consisting of market-based and performance based awards for which all necessary conditions had not been satisfied.