Net Income Per Share and Stockholders' Equity

9 Months Ended

Sep. 30, 2019

Net Income per Share and Stockholders Equity

Net Income Per Share and Stockholders' Equity

Net Income Per Share. Basic net income per share is computed by dividing distributed and undistributed net income allocable to common shares by the weighted-average number of common shares outstanding during the applicable period. The basic weighted-average number of common shares outstanding during the period excludes non-vested share-based payment awards. Diluted net income per share was calculated under the treasury stock method for the quarters and nine months ended September 30, 2019 and September 30, 2018, which in all periods was more dilutive than the two-class method.

The following table sets forth the computation of basic and diluted net income per share for the periods presented (in millions of dollars, except share and per share amounts):



	Quarter Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Numerator:
Net income	$	25.4	$	21.7	$	72.6	$	68.1
Denominator – Weighted-average common shares outstanding (in thousands):
Basic	15,956		16,573		16,042		16,654
Add: dilutive effect of non-vested common shares, restricted stock units and performance shares¹	169		210		193		228
Diluted	16,125		16,783		16,235		16,882

Net income per common share, Basic:	$	1.59	$	1.31	$	4.52	$	4.09
Net income per common share, Diluted:	$	1.57	$	1.29	$	4.47	$	4.03

____________________


¹	During both the quarter and nine months ended September 30, 2019, a total of seven thousand securities were excluded from the weighted-average diluted shares computation as their inclusion would have been anti-dilutive. There were no anti-dilutive securities during both the quarter and nine months ended September 30, 2018.

Preferred Stock. In connection with a tax asset protection rights plan, our Board of Directors declared a dividend, payable April 22, 2016, of one right for each outstanding share of our common stock. In general, if the rights had become exercisable, each right would have allowed its holder to purchase one one-hundredth of a share of our Series A Preferred Stock. The tax asset protection rights plan, including the rights to exercise, expired on April 7, 2019.