Note 10. 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)	2018			2019			2018			2019
Numerator: Basic and Diluted
Net income (loss)	$	(2,068)		$	1,509		$	(24,594)		$	(94)
Dividends paid and accrued		(2,758)			(2,758)			(5,516)			(5,517)
Undistributed income (loss)		(4,826)			(1,249)			(30,110)			(5,611)
Percentage allocated to common shares (a)		100.0	%		100.0	%		100.0	%		100.0	%
Undistributed income (loss) allocated to common shares		(4,826)			(1,249)			(30,110)			(5,611)
Dividends paid on common shares outstanding		2,722			2,738			5,455			5,475
Net income (loss) available to common shares		(2,104)			1,489			(24,655)			(136)
Denominator: Basic and Diluted
Weighted average common shares outstanding		12,422,485			12,448,792			12,416,627			12,439,689
Adjustment for dilutive potential common shares		—			151,500			—			—
Weighted average shares outstanding - Diluted		12,422,485			12,600,292			12,416,627			12,439,689

Basic net income (loss) per share	$	(0.17)		$	0.12		$	(1.99)		$	(0.01)
Diluted net income (loss) per share	$	(0.17)		$	0.12		$	(1.99)		$	(0.01)

Number of stock option shares excluded as their effect would be anti-dilutive		316,776			313,028			341,776			313,787
Number of restricted stock shares excluded as their effect would be anti-dilutive		97,535			66,688			97,685			67,694
Number of deferred restricted stock shares excluded as their effect would be anti-dilutive		16,550			29,050			16,550			29,050
Number of performance share awards excluded as their effect would be anti-dilutive		49,180			55,762			46,490			49,432

(a) Percentage allocated to common shares - Weighted average
Common shares outstanding		12,422,485			12,448,792			12,416,627			12,439,689
Unvested participating shares		—			—			—			—
		12,422,485			12,448,792			12,416,627			12,439,689