NOTE 13. 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 restricted stock units that have been excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Restricted stock units		7		2		17		9
Total		7		2		17		9

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Numerator:
Net income	$	7,187	$	17,369	$	37,014	$	33,713
Denominator:
Basic earnings per share - weighted average shares outstanding		31,901		31,571		31,807		31,455
Effect of potential dilutive securities:
Employee stock options and restricted stock units - dilutive shares		507		599		580		669
Warrant - dilutive shares		—		—		—		2
Diluted earnings per share - weighted average shares outstanding		32,408		32,170		32,387		32,126
Earnings per share:
Basic	$	0.23	$	0.55	$	1.16	$	1.07
Diluted	$	0.22	$	0.54	$	1.14	$	1.05