Earnings Per Share

12 Months Ended

Dec. 31, 2016

9. Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if dilutive securities were exercised into common stock. Stock options, restricted stock and deferred stock units are considered dilutive securities. Stock options to purchase 0.2 million, 0.3 million, and 0.5 million shares of common stock were outstanding at December 31, 2016, 2015, and 2014, respectively, but were not included in the computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of the common shares and, therefore, the effect would be antidilutive. An additional 0.4 million shares of common stock outstanding at December 31, 2015 were excluded from the computation of diluted earnings per share due to the net loss. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):

	Years Ended December 31,
	2016		2015			2014
Numerator:
Net income (loss)	$	63,852	$	(44,342	)	$	112,115
Denominator:
Denominator for basic earnings per share -
weighted average shares		36,580		37,457			38,705
Effect of dilutive securities:
Employee stock options and restricted units		338		-			425
Denominator for diluted earnings per share -
Adjusted weighted average shares and the effect of dilutive
securities		36,918		37,457			39,130
Net income (loss) per share:
Net income (loss) per share - basic	$	1.75	$	(1.18	)	$	2.90
Net income (loss) per share - diluted⁽¹⁾	$	1.73	$	(1.18	)	$	2.87

(1)

As a result of the net loss in the year ended December 31, 2015, the effect of potentially dilutive securities would have been anti-dilutive and have been omitted from the calculation of diluted earnings per share, consistent with GAAP.

Common Stock Repurchases

In 2016 and 2015, the Company repurchased 241,270 and 1,822,227 shares of ESND’s common stock at an aggregate cost of $6.8 million and $67.4 million, respectively. Depending on market and business conditions and other factors, the Company may continue or suspend purchasing its common stock at any time without notice. Acquired shares are included in the issued shares of the Company and treasury stock, but are not included in average shares outstanding when calculating earnings per share data. As of December 31, 2016 the Company had $68.2 million remaining on its current Board authorization to repurchase ESND common stock.

During 2016, 2015 and 2014, the Company reissued 468,142, 362,874, and 250,747 shares, respectively, of treasury stock to fulfill its obligations under its equity incentive plans.