NOTE B — EARNINGS PER SHARE

Basic earnings per common share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed using the weighted average number of common shares outstanding during the period plus any potentially dilutive common shares, such as stock options, restricted stock units and performance-based units calculated using the treasury stock method. Total anti-dilutive shares excluded from the diluted earnings per share were 208,510 of as March 31, 2018 and 368,796 as of March 31, 2017.

Our credit agreement restricts the payment of dividends or other distributions to our shareholders with respect to Hanger, Inc., the parent company, or any of its subsidiaries.

The reconciliation of the numerators and denominators used to calculate basic and diluted net loss per share are as follows:

	Three Months Ended March 31,
(in thousands, except share and per share data)	2018			2017

Net loss	$	(22,618	)	$	(17,734	)


Weighted average shares used to compute basic earnings per common share	36,498,482			36,084,630
Effect of potentially dilutive restricted stock units and options (1)	—			—

Weighted average shares used to compute diluted earnings per common share	36,498,482			36,084,630


Basic and diluted loss per common share	$	(0.62	)	$	(0.49	)

(1)

As we are recognizing a loss for the periods presented, shares used to compute diluted per common share amounts excludes 537,497 shares for 2018 and 401,204 shares for 2017 of potentially dilutive shares related to unvested restricted stock units and unexercised options in accordance with ASC 260 - Earnings Per Share.