EARNINGS PER SHARE

9 Months Ended

Mar. 31, 2022

Basic earnings per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares after considering the additional dilution related to common stock options and restricted stock. In computing diluted earnings per share, the outstanding common stock options are considered dilutive using the treasury stock method.

The Company’s restricted stock awards are considered participating securities as the shares have full voting rights and are entitled to participate in dividends declared on common shares, if any, and undistributed earnings. The two-class method presentation of the basic and diluted EPS is not presented as the amount of earnings allocated to the participating securities was not material for the periods presented. Instead, the unvested awards are included in the diluted EPS.

The following information is necessary to calculate earnings per share for the periods presented (in thousands, except per-share amounts):


	Three-Months Ended March 31,				Nine-Months Ended March 31,
	2022		2021		2022		2021
Net income (loss) as reported	$	(287)	$	6,850	$	(1,046)	$	7,785

Weighted average common shares outstanding	19,412		16,556		18,842		16,481
Effect of dilutive stock options	—		631		—		497
Weighted average diluted common shares outstanding	19,412		17,187		18,842		16,978

Net income (loss) per common share

Basic	$	(0.01)	$	0.41	$	(0.06)	$	0.47
Diluted	$	(0.01)	$	0.40	$	(0.06)	$	0.46
Employee stock options excluded from computation of dilutive income per share amounts because their effect would be anti-dilutive	924		—		924		—