Net Income Per Common Share

9 Months Ended

Sep. 30, 2020

Net Income Per Common Share

Net Income Per Common Share

Note 5 — Net Income Per Common Share

Basic net income per common share (“Basic EPS”) excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share. During the nine months ended September 30, 2020, 200,000 performance shares (at target performance) were excluded from the computation of Diluted EPS since the Company had not achieved the minimum target thresholds as of September 30, 2020. During the nine months ended September 30, 2019, 150,000 performance shares (at target performance) were excluded from the computation of Diluted EPS since the Company had not achieved the minimum target thresholds as of September 30, 2019.

The calculation of the weighted average number of shares of common stock outstanding for Basic EPS and Diluted EPS for the periods indicated (in thousands, except per share data) is as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Numerator:
Net Income	$	33,662	$	91,339	$	37,935	$	267,572
Denominator:
Weighted average number of common shares outstanding		50,181		50,746		50,199		51,111
Effect of outstanding share-based awards		441		383		246		457
Weighted average number of shares for diluted net income per common share		50,622		51,129		50,445		51,568
Basic earnings per share	$	0.67	$	1.80	$	0.76	$	5.24
Diluted earnings per share	$	0.66	$	1.79	$	0.75	$	5.19