Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

v3.10.0.1
Net Income (Loss) Per Share
 6 Months Ended
Jun. 30, 2018
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share
Net Income (Loss) Per Share
 
Basic net income (loss) per common share (“Basic EPS”), is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income (loss) per common share.

Following is a reconciliation of the numerator and denominator of Basic EPS to the numerator and denominator of Diluted EPS for the three and six months ended June 30, 2018 and 2017 (dollar and share amounts in thousands, except for per share information): 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2018
 
2017
 
2018
 
2017
Net income (loss) attributable to common shareholders
$
67

 
$
(187
)
 
$
565

 
$
1,973

 
 
 
 
 
 
 
 
Basic weighted average shares outstanding
19,105

 
18,876

 
19,058

 
18,861

 
 
 
 
 
 
 
 
Basic earnings (loss) per share attributable to common shareholders
$
—

 
$
(0.01
)
 
$
0.03

 
$
0.10

 
 
 
 
 
 
 
 
Diluted shares outstanding:
 

 
 

 
 

 
 

Basic weighted-average shares outstanding
19,105

 
18,876

 
19,058

 
18,861

Stock-based awards
297

 
—

 
350

 
390

Diluted weighted-average shares outstanding
19,402

 
18,876

 
19,408

 
19,251

 
 
 
 
 
 
 
 
Diluted earnings (loss) per share attributable to common shareholders
$
—

 
$
(0.01
)
 
$
0.03

 
$
0.10

 
 
 
 
 
 
 
 
Dilutive shares excluded from diluted-per-share amounts:
 

 
 

 
 

 
 

Stock options
330

 
—

(1)
330

 
371

 
 
 
 
 
 
 
 
Anti-dilutive shares excluded from diluted-per-share amounts:
 

 
 

 
 

 
 

Stock options
1,160

 
2,444

(1)
1,160

 
1,363



(1)   As a result of the net loss for the three months ended June 30, 2017, no potentially dilutive securities are included in the calculation of diluted earnings (loss) per share because such effect would be anti-dilutive. Potentially dilutive securities include 1,540 outstanding options to purchase shares of common stock and 904 restricted stock units.

Potentially dilutive shares excluded from diluted-per-share amounts include performance-based options to purchase shares of common stock for which certain earnings metrics have not been achieved. Potentially anti-dilutive shares excluded from diluted-per-share amounts include both non-qualified stock options and unearned performance-based options to purchase shares of common stock with exercise prices greater than the weighted-average share price during the period and shares that would be anti-dilutive to the computation of diluted net income (loss) per share for each of the periods presented.