NOTE 12 - EARNINGS PER SHARE DATA

Basic earnings per share is computed based on weighted average shares outstanding and excludes dilutive securities. Diluted earnings per share is computed including the impacts of all potentially dilutive securities. For the year ended December 31, 2015, we excluded the potential dilution of convertible preferred stock, which could be converted into 840,000 shares because they would be anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data):

	December 31,

	2017			2016			2015
Basic:
Weighted average shares outstanding		17,400			15,042			14,423

Net income (loss) attributable to DXP Enterprises, Inc.	$	16,888		$	7,702		$	(38,536	)
Convertible preferred stock dividend		(90	)		(90	)		(90	)
Net income (loss) attributable to common shareholders	$	16,798		$	7,612		$	(38,626	)
Per share amount	$	0.97		$	0.51		$	(2.68	)

Diluted:
Weighted average shares outstanding		17,400			15,042			14,423
Assumed conversion of convertible preferred stock		840			840			-
Total dilutive shares		18,240			15,882			14,423
Net income (loss) attributable to common shareholders	$	16,798		$	7,612		$	(38,626	)
Convertible preferred stock dividend		90			90			-
Net income (loss) attributable to DXP Enterprises, Inc. for diluted earnings per share	$	16,888		$	7,702		$	(38,626	)
Per share amount	$	0.93		$	0.49		$	(2.68	)

Basic earnings per share have been computed by dividing net earnings by the weighted average number of common shares outstanding during the period and excludes dilutive securities. Diluted earnings per share reflects the potential dilution that could occur if the preferred stock was converted into common stock. Restricted stock is considered a participating security and is included in the computation of basic earnings per share as if vested. Because holders of Preferred Stock do not participate in losses, the loss was not allocated to Preferred Stock for fiscal year 2015. The Preferred Stock is convertible into 840,000 shares of common stock.