Earnings Per Share

9 Months Ended

Sep. 30, 2022

Basic net income per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share assumes the conversion of all potentially dilutive securities and is calculated by dividing net income by the sum of the weighted average number of shares of common stock outstanding plus all potentially dilutive securities. Dilutive common shares consist primarily of stock options and restricted stock awards.

The following table sets forth the computation of basic and diluted earnings per share:


	Three Months Ended				Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Numerator:	(in thousands, except share and per share data)
Net income	$	27,473	$	15,581	$	61,478	$	52,572
Denominator:
Basic weighted average shares	53,185,324		52,420,711		53,029,284		52,392,300
Effect of dilutive shares related to stock based compensation1	773,391		1,125,802		757,210		1,272,697
Effect of dilutive shares related to contingent consideration2	—		—		135,371		—
Diluted weighted average shares	53,958,715		53,546,513		53,921,865		53,664,997
Earnings per share:
Basic	$	0.52	$	0.30	$	1.16	$	1.00
Dilutive	$	0.51	$	0.29	$	1.14	$	0.98
Anti-dilutive shares:
Shares	764,505		375,428		693,898		291,236
1 Dilutive shares related to stock options, restricted stock, PSUs and Key Employee Awards (Note 13)
2 Dilutive shares related to contingent shares issued to the former owners of BasX (Note 3 & Note 16)