Quarterly report pursuant to Section 13 or 15(d)

Net Income Per Share

v3.19.3
Net Income Per Share
9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Net Income Per Share Net Income Per Share
 
Basic net income per common share (“Basic EPS”), is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income 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 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 nine months ended September 30, 2019 and 2018 (dollar and share amounts in thousands, except for per share information): 
  Three Months Ended
September 30,
Nine Months Ended
September 30,
  2019 2018 2019 2018
Net income attributable to common shareholders $ 1,317    $ 1,497    $ 5,763    $ 2,062   
Basic weighted average shares outstanding 19,313    19,164    19,291    19,094   
Basic earnings per share attributable to common shareholders $ 0.07    $ 0.08    $ 0.30    $ 0.11   
Diluted shares outstanding:        
Basic weighted-average shares outstanding 19,313    19,164    19,291    19,094   
Stock-based awards 349    218    327    312   
Diluted weighted-average shares outstanding 19,662    19,382    19,618    19,406   
Diluted earnings per share attributable to common shareholders $ 0.07    $ 0.08    $ 0.29    $ 0.11   
Dilutive shares excluded from diluted-per-share amounts:        
Stock options 439    105    439    105   
Anti-dilutive shares excluded from diluted-per-share amounts:        
Stock options 218    1,036    243    1,011   

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 per share for each of the periods presented.