Net Income Per Share

9 Months Ended

Sep. 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 nine months ended September 30, 2020 and 2019 (dollar and share amounts in thousands, except for per share information):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019



Net income attributable to common shareholders	$	6,755	$	1,317	$	15,471	$	5,763

Basic weighted average shares outstanding	19,533		19,313		19,493		19,291




Basic earnings per share attributable to common shareholders	$	0.35	$	0.07	$	0.79	$	0.30

Diluted shares outstanding:
Basic weighted-average shares outstanding	19,533		19,313		19,493		19,291
Stock-based awards	326		349		327		327
Diluted weighted-average shares outstanding	19,859		19,662		19,820		19,618




Diluted earnings per share attributable to common shareholders	$	0.34	$	0.07	$	0.78	$	0.29

Dilutive shares excluded from diluted-per-share amounts:
Stock options	791		439		791		439

Anti-dilutive shares excluded from diluted-per-share amounts:
Stock options	199		218		199		243

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.