COMPUTATION OF NET INCOME PER COMMON SHARE (Tables)

6 Months Ended

Jun. 30, 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 June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Numerator:
Net income attributable to The Pennant Group, Inc.	$	4,337	$	3,487	$	7,317	$	4,821
Add: net income attributable to noncontrolling interests	—		200		—		350
Net Income	$	4,337	$	3,687	$	7,317	$	5,171
Denominator:
Weighted average shares outstanding for basic net income per share	27,952		27,834		27,922		27,834
Plus: assumed incremental shares from exercise of options and assumed conversion or vesting of restricted stock(a)	1,710		—		1,858		—
Adjusted weighted average common shares outstanding for diluted income per share	29,662		27,834		29,780		27,834
Earnings Per Share:
Basic net income per common share	$	0.16	$	0.13	$	0.26	$	0.19
Diluted net income per common share	$	0.15	$	0.13	$	0.25	$	0.19

(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 240 and 102 for the three and six months ended June 30, 2020, respectively.