COMPUTATION OF NET INCOME PER COMMON SHARE (Tables)

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Computation of basic and diluted net income per share

The following table sets forth the computation of basic and diluted net income per share for the periods presented:

	Three Months Ended March 31,
	2020		2019
Numerator:
Net income attributable to The Pennant Group, Inc.	$	2,980	$	1,334
Add: net income attributable to noncontrolling interests	—		150
Net Income	$	2,980	$	1,484
Denominator:
Weighted average shares outstanding for basic net income per share	27,891		27,834
Plus: incremental shares from assumed conversion or vesting of restricted stock(a)	1,982		—
Adjusted weighted average common shares outstanding for diluted income per share	29,873		27,834
Earnings Per Share:
Basic net income per common share	$	0.11	$	0.05
Diluted net income per common share	$	0.10	$	0.05

(a) The calculation of dilutive shares outstanding excludes out-of-the-money stock options (i.e., such options’ exercise prices were greater than the average market price of our common shares for the period) because their inclusion would have been antidilutive. Options outstanding which are anti-dilutive and therefore not factored into the weighted average common shares amount above were immaterial for the three months ended March 31, 2020.