Earnings Per Share of Common Stock

6 Months Ended

Mar. 31, 2018

Basic net income (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income (loss) 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 (loss) 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 (loss) attributable to common stockholders are as follows:



	For the three months ended					For the six months ended
	March 31, 2018			March 31, 2017		March 31, 2018			March 31, 2017
	(Amounts in thousands except per share data)
Net income (loss)	$	(594	)	$	428	$	(1,794	)	$	385
Less: net income attributable to nonvested common stock	—			18		—			28
Net income (loss) attributable to common stockholders	$	(594	)	$	410	$	(1,794	)	$	357

Weighted average total shares outstanding – basic	3,823			3,888		3,795			3,986
Less: weighted average non-vested shares outstanding	—			164		—			289
Weighted average number of common shares outstanding – basic	3,823			3,724		3,795			3,697
Potential common shares from non-vested stock awards and the assumed exercise of stock options	—			123		—			110
Weighted average common shares outstanding – diluted	3,823			3,847		3,795			3,807

Net income (loss) per share – basic	$	(0.16	)	$	0.11	$	(0.47	)	$	0.10
Net income (loss) per share – diluted	$	(0.16	)	$	0.11	$	(0.47	)	$	0.09

Non-vested restricted stock awards of 168,000 and 169,000 shares were excluded from the diluted loss per share calculation for the three and six months ended March 31, 2018, respectively, as there was a net loss and their inclusion would have been anti-dilutive.