Net Income Per Common Share

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Net Income Per Common Share

NET INCOME (LOSS) PER COMMON SHARE

Net income (loss) per common share is computed based on the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed similarly but includes the effect of the assumed exercise of dilutive stock appreciation rights and restricted stock under the treasury stock method.

On May 13, 2021, the Company's shareholders approved the 2021 Long Term Equity Incentive Plan (the “2021 Plan”) that replaced the 2006 Long Term Equity Incentive Plan (the “2006 Plan”) approved in May 2006 and amended in May 2015. The 2021 Plan provides restricted stock award recipients voting rights equivalent to the Company's common stock and accrual of dividends but not receipt of dividends until all conditions or restrictions related to such award have been satisfied. Accordingly, the restricted shares are not considered participating shares. The 2006 Plan provides restricted shares award recipients voting rights equivalent to the Company’s common stock and accrual and receipt of dividends irrespective of any conditions or restrictions related to such award being satisfied. Accordingly, the restricted shares are considered a participating security and the Company is required to apply the two-class method to consider the impact of the restricted shares on the calculation of basic and diluted earnings per share.

The computation of basic and diluted net income (loss) per common share (in thousands, except for per share data) is as follows:

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Net income (loss)	$	4,086	$	(2,272)	$	7,542	$	5,689
Less: net income allocated to participating securities	232		—		437		236
Net income (loss) available to common shareholders	$	3,854	$	(2,272)	$	7,105	$	5,453
Weighted average common shares outstanding — basic	8,002,000		7,916,000		7,994,000		7,899,000
Effect of weighted average dilutive securities	12,000		—		19,000		2,000
Weighted average common and potentially issuable common shares outstanding — diluted	8,014,000		7,916,000		8,013,000		7,901,000
Basic net income (loss) per common share	$	0.48	$	(0.29)	$	0.89	$	0.69
Diluted net income (loss) per common share	$	0.48	$	(0.29)	$	0.89	$	0.69

The computation of basic and diluted net income per participating share (in thousands, except for per share data) is as follows:

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Net income allocated to participating securities	$	232	$	—	$	437	$	236
Weighted average participating shares outstanding — basic	482,000		—		491,000		342,000
Effect of dilutive securities on participating shares	—		—		—		—
Weighted average common and potentially issuable participating shares outstanding — diluted	482,000		—		491,000		342,000
Basic net income per participating share	$	0.48	$	—	$	0.89	$	0.69
Diluted net income per participating share	$	0.48	$	—	$	0.89	$	0.69