NOTE 12. Earnings Per Share

Basic earnings per share is calculated using the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed in the same manner and also gives effect to all dilutive common equivalent shares outstanding during the period. Potential common shares that would have the effect of increasing diluted earnings per share are considered to be anti-dilutive. In accordance with U.S. GAAP, these shares were not included in calculating diluted earnings per share.

The following table sets forth the weighted average number of stock options and restricted stock units that have been excluded from the calculation of diluted earnings per share as their effect would have been antidilutive:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Stock options		—		—		—		52
Restricted stock units		2		—		9		—
Total		2		—		9		52

The Company’s basic and diluted earnings per share amounts are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Numerator:
Net income	$	17,369	$	9,286	$	33,713	$	30,826
Denominator:
Basic earnings per share - weighted average shares outstanding		31,571		30,988		31,455		31,082
Effect of potential dilutive securities:
Employee stock options and restricted stock units - dilutive shares		599		471		669		435
Convertible senior notes - dilutive shares		—		—		—		138
Warrant - dilutive shares		—		—		2		—
Diluted earnings per share - weighted average shares outstanding		32,170		31,459		32,126		31,655
Earnings per share:
Basic	$	0.55	$	0.30	$	1.07	$	0.99
Diluted	$	0.54	$	0.30	$	1.05	$	0.97