Net Income Per Share

6 Months Ended

Jun. 30, 2020

Basic net income per common share (“Basic EPS”), is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share.

Following is a reconciliation of the numerator and denominator of Basic EPS to the numerator and denominator of Diluted EPS for the three and six months ended June 30, 2020 and 2019 (dollar and share amounts in thousands, except for per share information):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019



Net income attributable to common shareholders	$	5,754	$	2,689	$	8,716	$	4,446

Basic weighted average shares outstanding	19,491		19,291		19,472		19,280




Basic earnings per share attributable to common shareholders	$	0.30	$	0.14	$	0.45	$	0.23

Diluted shares outstanding:
Basic weighted-average shares outstanding	19,491		19,291		19,472		19,280
Stock-based awards	292		311		253		316
Diluted weighted-average shares outstanding	19,783		19,602		19,725		19,596




Diluted earnings per share attributable to common shareholders	$	0.29	$	0.14	$	0.44	$	0.23

Dilutive shares excluded from diluted-per-share amounts:
Stock options	844		445		844		445

Anti-dilutive shares excluded from diluted-per-share amounts:
Stock options	264		838		239		862

Potentially dilutive shares excluded from diluted-per-share amounts include performance-based options to purchase shares of common stock for which certain earnings metrics have not been achieved. Potentially anti-dilutive shares excluded from diluted-per-share amounts include both non-qualified stock options and unearned performance-based options to purchase shares of common stock with exercise prices greater than the weighted-average share price during the period and shares that would be anti-dilutive to the computation of diluted net income per share for each of the periods presented.