Earnings Per Share

3 Months Ended

Mar. 31, 2021

The Company’s shares of restricted stock contain rights to receive nonforfeitable dividends and thus are participating securities requiring the computation of basic earnings per share (“EPS”) using the two-class method. As the shares of restricted stock are both potential shares of common stock and participating securities, the Company calculates diluted earnings per share by the more dilutive of the treasury stock method or the two-class method. The calculation of EPS for net income available to common shareholders excludes the distribution of dividends and undistributed earnings attributable to participating securities from the numerator. The diluted earnings weighted average shares of common stock outstanding includes stock options, PVRSUs and RSUs. Stock options are included in the calculation, unless the exercise price is lower than the Company’s average share price for the period as the inclusion would be anti-dilutive. PVRSUs are included in the calculation if the performance condition has been met or the market condition is probable as of the reporting date.

The computation of basic and diluted earnings per share of common stock is as follows:


	Three Months Ended
	March 31,
(in thousands, except per share amounts)		2021		2020
Numerator:
Net income		$	22,337	$	55,463
Income allocated to participating securities		(110)		(317)
Net income available to common shareholders		$	22,227	$	55,146
Denominator:
Weighted average shares of common stock outstanding – basic		55,263		55,343
Basic earnings per share		$	0.40	$	1.00

Numerator:
Net income		$	22,337	$	55,463
Income allocated to participating securities		(110)		(316)
Net income available to common shareholders		$	22,227	$	55,147
Denominator:
Weighted average shares of common stock outstanding – basic		55,263		55,343
Diluted effect of stock options and PVRSUs		398		334
Weighted average shares of common stock outstanding – diluted		55,661		55,677
Diluted earnings per share		$	0.40	$	0.99

The following securities have been excluded from the calculation of diluted weighted average shares of common stock outstanding as the inclusion of these securities would have an anti-dilutive effect or the performance or market conditions have not been met:


	Three Months Ended
	March 31,
(in thousands)	2021	2020
Stock options	—	159
PVRSUs	83	253