EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2018

Basic earnings per share ("EPS") is computed by dividing net income attributable to Heska Corporation by the weighted-average number of common shares outstanding during the period. The computation of diluted EPS is similar to the computation of basic EPS except that the numerator is increased to exclude charges that would not have been incurred, and the denominator is increased to include the number of additional common shares that would have been outstanding (using the if-converted and treasury stock methods), if securities containing potentially dilutive common shares (stock options and restricted stock units but excluding options to purchase fractional shares resulting from the Company's December 2010 1-for-10 reverse stock split) had been converted to common shares, and if such assumed conversion is dilutive.

The following is a reconciliation of the weighted-average shares outstanding used in the calculation of basic and diluted earnings per share for the three months ended March 31, 2018 and 2017 (in thousands, except per share data):



	Three Months Ended March 31,
	2018		2017
Net income attributable to Heska	$	2,155	$	4,607

Basic weighted-average common shares outstanding	7,102		7,011
Assumed exercise of dilutive stock options and restricted shares	609		583
Diluted weighted-average common shares outstanding	7,711		7,594

Basic earnings per share attributable to Heska	$	0.30	$	0.66
Diluted earnings per share attributable to Heska	$	0.28	$	0.61

The following stock options and restricted shares were excluded from the computation of diluted earnings per share because they would have been anti-dilutive (in thousands):



	Three Months Ended March 31,
	2018	2017
Stock options	244	110