Net Income (Loss) Per Share

6 Months Ended

Mar. 31, 2018

Note 9.Net Income (Loss) Per Share

The Company accounts for earnings per share using the two-class method. The two-class method is an earnings allocation that determines net income per share for each class of common stock and participating securities according to participation rights in undistributed earnings. Non-vested restricted stock awards that include non-forfeitable rights to dividends are considered participating securities. Per share amounts are computed by dividing net income attributable to common stockholders by the weighted average shares outstanding during each period. Basic earnings per share is computed by dividing net income available to common stockholders for the period by the weighted average number of common shares outstanding for the period. The computation of diluted earnings per share is similar to basic earnings per share, except the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued.

The following table sets forth the computation of basic and diluted earnings (losses) per share for the periods indicated:


	Three Months Ended						Six Months Ended
	March 31,						March 31,
(in thousands, except share and per share data)	2017			2018			2017			2018
Numerator: Basic and Diluted
Net income (loss)	$	(1,890)		$	(2,068)		$	(2,562)		$	(24,594)
Dividends paid and accrued		(2,752)			(2,758)			(5,505)			(5,516)
Undistributed income (loss)		(4,642)			(4,826)			(8,067)			(30,110)
Percentage allocated to common shares (a)		100.0	%		100.0	%		100.0	%		100.0	%
Undistributed income (loss) allocated to common shares		(4,642)			(4,826)			(8,067)			(30,110)
Dividends paid on common shares outstanding		2,727			2,722			5,453			5,455
Net income (loss) available to common shares		(1,915)			(2,104)			(2,614)			(24,655)
Denominator: Basic and Diluted
Weighted average common shares outstanding		12,400,522			12,422,485			12,391,264			12,416,627
Adjustment for dilutive potential common shares		—			—			—			—
Weighted average shares outstanding - Diluted		12,400,522			12,422,485			12,391,264			12,416,627

Basic net income (loss) per share	$	(0.15)		$	(0.17)		$	(0.20)		$	(1.99)
Diluted net income (loss) per share	$	(0.15)		$	(0.17)		$	(0.20)		$	(1.99)

Number of stock option shares excluded as their effect would be anti-dilutive		299,667			316,776			322,417			341,776
Number of restricted stock shares excluded as their effect would be anti-dilutive		107,210			97,535			108,498			97,685
Number of deferred restricted stock shares excluded as their effect would be anti-dilutive		—			16,550			—			16,550
Number of performance share awards excluded as their effect would be anti-dilutive		9,500			49,180			14,250			46,490

(a) Percentage allocated to common shares - Weighted average
Common shares outstanding		12,400,522			12,422,485			12,391,264			12,416,627
Unvested participating shares		—			—			—			—
		12,400,522			12,422,485			12,391,264			12,416,627