Earnings per share (EPS)

12 Months Ended

Dec. 31, 2016

19.	Earnings per share (EPS)

Basic EPS is computed using the weighted average number of common shares outstanding during each of the respective years. Diluted EPS is computed using the weighted average number of common and common equivalent shares outstanding during each of the respective years using the treasury stock method. The difference between basic and diluted shares, if any, largely results from common equivalent shares, which represents the dilutive effect of the assumed exercise of certain outstanding share options, the assumed vesting of restricted stock granted to employees and directors, or the satisfaction of certain necessary conditions for contingently issuable shares (see Note 16).

For each of the three years ended December 31, 2016, no adjustments were made to net income (loss) for purposes of calculating basic and diluted EPS. The following is a reconciliation of the weighted average shares used in the diluted EPS computations.

	Year Ended December 31,
	2016		2015		2014
Weighted average common shares-basic		18,144,019		18,795,194		18,459,054
Effect of diluted securities:
Unexercised stock options and employee stock purchase plan		161,092		—		—
Unvested time-based restricted stock awards		138,291		—		—
Unvested performance-based restricted stock awards		19,759		—		—
Weighted average common shares-diluted		18,463,161		18,795,194		18,459,054

No adjustments have been made for any common stock equivalents for the years ended December 31, 2015 or 2014, because the effect would be anti-dilutive. There were 542,555; 1,033,731 and 1,229,781 outstanding options, restricted stock, and performance-based or market-based equity awards not included in the diluted earnings per share computation for the years ended December 31, 2016, 2015 and 2014, respectively, because inclusion of these awards was anti-dilutive or, for performance-based and market-based awards, all necessary conditions have not been satisfied by the end of the respective period.