Earnings Per Share of Common Stock

3 Months Ended

Dec. 31, 2017

Basic net income per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income per common share reflects the maximum dilution that would have resulted from the assumed exercise and share repurchase related to dilutive stock options and is computed by dividing net income by the assumed weighted average number of common shares outstanding.

We are required to present earnings per share, or EPS, utilizing the two class method because we had outstanding, non-vested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, which are considered participating securities.

Basic and diluted earnings per share computations for the Company’s reported net income attributable to common stockholders are as follows:



	For the three months ended
	December 31, 2017			December 31, 2016
	(Amounts in thousands except per share data)
Net loss	$	(1,200	)	$	(43	)
Less: net income attributable to nonvested common stock	—			—
Net loss attributable to common stockholders	$	(1,200	)	$	(43	)

Weighted average total shares outstanding – basic	3,768			3,671
Less: weighted average non-vested shares outstanding	—			—
Weighted average number of common shares outstanding – basic	3,768			3,671
Potential common shares from non-vested stock awards and the assumed exercise of stock options	—			—
Weighted average common shares outstanding – diluted	3,768			3,671

Net loss per share – basic	$	(0.32	)	$	(0.01	)
Net loss per share – diluted	$	(0.32	)	$	(0.01	)

Non-vested restricted stock awards of 170,000 and 149,000 shares were excluded from the diluted income per share calculation for the three months ended December 31, 2017 and December 31, 2016, respectively, as there was a net loss and their inclusion would have been anti-dilutive.