Earnings Per Share

9 Months Ended

Sep. 30, 2020

Note 5 – Earnings Per Share

Basic earnings per share (“EPS”) is calculated by dividing the net income attributable to our Company’s common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated by dividing the net income attributable to our Company’s common stockholders by the weighted average number of common and common equivalent shares outstanding during the period and is calculated using the treasury stock method for equity-based compensation awards.

The following table sets forth the computation of basic and diluted EPS and a reconciliation of the weighted average number of common and common equivalent shares outstanding:



	Quarter Ended				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands, except share data)	2020		2019		2020		2019
Numerator:
Net income (loss) attributable to RDI common stockholders	$	(19,228)	$	851	$	(47,806)	$	1,057
Denominator:
Weighted average number of common stock – basic		21,748,531		22,546,827		21,749,146		22,791,530
Weighted average dilutive impact of awards		350,226		141,403		350,226		161,308
Weighted average number of common stock – diluted		22,098,757		22,688,230		22,099,372		22,952,838
Basic earnings (loss) per share attributable to RDI common stockholders	$	(0.88)	$	0.04	$	(2.20)	$	0.05
Diluted earnings (loss) per share attributable to RDI common stockholders	$	(0.88)	$	0.04	$	(2.20)	$	0.05
Awards excluded from diluted earnings (loss) per share		674,676		516,010		674,676		516,010

Our weighted average number of common stock - basic decreased, primarily as a result of the repurchase of shares of Class A Non-Voting Common Stock pursuant to our current stock repurchase program offset by the vesting of restricted stock units. During the first nine months of 2020, we repurchased 75,157 shares of Class A Non-Voting Common Stock at an average price of $8.92 per share. All purchases occurred in the first quarter of 2020.

Certain shares issuable under stock options and restricted stock units were excluded from the computation of diluted net income (loss) per share in periods when their effect was anti-dilutive; either because our Company incurred a net loss for the period, or the exercise price of the options was greater than the average market price of the common stock during the period, or the effect was anti-dilutive as a result of applying the treasury stock method.