Earnings Per Share

9 Months Ended

Sep. 30, 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 and nine months ended September 30, 2020 include outstanding stock options, RSUs, and the potentially dilutive effect of outstanding warrants and the underlying shares exercisable under the Company’s 1.00% Convertible Senior Notes due 2020. The potentially dilutive effect of outstanding warrants and the underlying shares exercisable under 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 note hedge as described in Note 9. Current and Long-Term Debt, was also excluded as the effect is anti-dilutive.

The details of the Company's Earnings per Share calculation are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,

	2020		2019		2020		2019
	(in thousands, excluding share and per share amounts)
Net income available to common shareholders	$	5,732	$	20,864	$	9,565	$	35,654
Weighted average common basic shares outstanding (for basic calculation)	44,506,874		45,058,226		44,557,103		46,040,027
Dilutive effect of outstanding common stock options and RSUs	702,822		445,939		825,584		435,326
Weighted average common dilutive shares outstanding (for diluted calculation)	45,209,696		45,504,165		45,382,687		46,475,353

Net income per common share - basic	$	0.13	$	0.46	$	0.21	$	0.77
Net income per common share - diluted	$	0.13	$	0.46	$	0.21	$	0.77

The computations of diluted earnings per share for the three and nine months ended September 30, 2020 exclude approximately 900,000 and 390,000 potentially dilutive common shares, respectively, due to the effect of including these shares in the computation would have been antidilutive. In addition, the computations of diluted earnings per share for the three and nine months ended September 30, 2020 exclude approximately 175,000 and 40,000 weighted average dilutive shares, respectively, that are contingently issuable, consisting of market-based and performance based awards for which all necessary conditions had not been satisfied.