ARNINGS (LOSS) PER SHARE

Basic earnings per share is computed using the weighted average number of shares of common stock outstanding during the period. In periods of earnings, the weighted average number of shares used in the diluted calculation includes common stock equivalents related to stock options and restricted stock. The following table presents the basis of the earnings per share computation (in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2017		2016			2017		2016
Numerator for basic and diluted loss per share:
Net earnings (loss) applicable to common shareholders	$	2,199	$	(1,383	)	$	2,674	$	(2,484	)

Denominator for basic and diluted loss per share:
Denominator for basic and diluted loss per share — weighted average shares	12,907		12,835			12,894		12,815
Assumed exercise of stock options	21		—			7		—
Assumed satisfaction of restricted stock conditions	56		—			43		—
Denominator for diluted earnings per share — adjusted weighted average shares	12,984		12,835			12,944		12,815

Common stock equivalents of certain stock-based awards totaling 221,076 and 99,384 were excluded from the calculation of diluted earnings per share for the three and nine months ended September 30, 2017, respectively, as they were anti-dilutive. There is no dilutive effect of the restricted stock and stock options for the three and nine months ended September 30, 2016 due to the net loss in these periods. There would have been 90,405 and 93,245 of these shares included in the diluted calculation for the three and nine months ended September 30, 2016, respectively, had there been earnings in this period.