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 March 31,
	2018		2017
Stock options		—		—
Restricted stock units		33		25
Total		33		25

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

	Three Months Ended March 31,
	2018		2017
Numerator:
Net income	$	15,130	$	7,151
Denominator:
Basic earnings per share - weighted average shares outstanding		31,662		31,290
Effect of potential dilutive securities:
Employee stock options and restricted stock units - dilutive shares		655		762
Warrant - dilutive shares		—		6
Diluted earnings per share - weighted average shares outstanding		32,317		32,058
Earnings per share:
Basic	$	0.48	$	0.23
Diluted	$	0.47	$	0.22