Earnings Per Share

6 Months Ended

Jun. 30, 2021

Note 14 – Earnings Per Share

Basic earnings per share is computed using the weighted-average number of shares outstanding. Diluted earnings per share is computed using the weighted-average number of shares outstanding adjusted for the incremental shares attributed to outstanding stock equivalents. Stock equivalents include common stock issuable upon the exercise of stock options and other equity instruments and are computed using the treasury stock method. Under the treasury stock method, the exercise price of a share and the amount of compensation cost, if any, for future service that the Company has not yet recognized are assumed to be used to repurchase shares in the current period. In periods when losses are reported, the weighted-average number of shares outstanding excludes stock equivalents because their inclusion would have an anti-dilutive effect.

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


	Three Months Ended June 30,					Six Months Ended June 30,
(in thousands, except per share data)	2021		2020			2021		2020
Net income (loss)	$	7,369	$	(3,407	)	$	15,286	$	445
Denominator for basic earnings per share – weighted-average number of common shares outstanding during the period		35,753		36,439			36,000		36,614
Incremental common shares attributable to exercise of dilutive options		45		—			49		49
Incremental common shares attributable to outstanding restricted stock units		263		—			425		200
Denominator for diluted earnings per share		36,061		36,439			36,474		36,863
Basic earnings (loss) per share	$	0.21	$	(0.09	)	$	0.42	$	0.01
Diluted earnings (loss) per share	$	0.20	$	(0.09	)	$	0.42	$	0.01

Restricted stock units totaling 4 thousand shares for both the three and six months ended June 30, 2021, respectively, were not included in the computation of diluted earnings per share because their effect would have been anti-dilutive. Potentially dilutive securities totaling 0.3 million shares for the three months ended June 30, 2020 were not included in the computation of diluted loss per share because their effect would have decreased the loss per share. Restricted stock units totaling 0.5 million shares for the six months ended June 30, 2020 were not included in the computation of diluted earnings per share because their effect would have been anti-dilutive.