Earnings Per Share

3 Months Ended

Mar. 31, 2018

(5) Earnings Per Share

Basic earnings per share (“EPS”) is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Restricted stock awards are subject to the risk of forfeiture and are not included in the calculation of basic weighted average number of common shares outstanding until vested. Diluted EPS is calculated under the treasury stock method. Potential common shares included restricted common stock and incremental shares of common stock issuable upon the exercise of stock options.

The following table is a reconciliation of net income and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted EPS:

		Three Months Ended March 31,
		2018		2017
	(In thousands, except per share data)
Numerator:
Net income		$	14,855	$	10,152
Denominator:
Weighted average shares outstanding - basic			44,214		44,109
Dilutive effect of share-based awards			628		232
Weighted average shares outstanding - diluted			44,842		44,341
Earnings per share:
Basic		$	0.34	$	0.23
Diluted			0.33		0.23

The following table represents the number of stock options and restricted share awards that were issued or outstanding but excluded in calculating diluted EPS because their effect would have been anti-dilutive for the periods indicated, or the underlying performance criteria had not yet been met:

		Three Months Ended March 31,
		2018		2017
	(In thousands)
Stock options			986		2,221
Restricted share awards			—		74
Total			986		2,295