Earnings (loss) per Share

9 Months Ended

Sep. 30, 2020

Basic earnings (loss) per share is computed by dividing net income by the weighted-average number of shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the sum of (1) the weighted-average number of shares of common stock outstanding during the period, and (2) the dilutive effect of assumed conversion of equity awards using the treasury stock method. With respect to the number of weighted-average shares outstanding (denominator), diluted shares reflects: (i) the exercise of options to acquire common stock to the extent that the options’ exercise prices are less than the average market price of common shares during the period and (ii) the pro forma vesting of restricted stock units.

The following table sets forth the computations of basic and diluted earnings per share:


	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019

Basic earnings (loss) per share:
Numerator:
Net income (loss) attributable to Mistras Group, Inc.	$	1,523	$	3,093	$	(99,642)	$	5,231
Denominator:
Weighted-average common shares outstanding	29,177		28,800		29,086		28,678
Basic earnings (loss) per share	$	0.05	$	0.11	$	(3.43)	$	0.18

Diluted earnings (loss) per share:
Numerator:
Net income (loss) attributable to Mistras Group, Inc.	$	1,523	$	3,093	$	(99,642)	$	5,231
Denominator:
Weighted-average common shares outstanding	29,177		28,800		29,086		28,678
Dilutive effect of stock options outstanding	—		129		—		147
Dilutive effect of restricted stock units outstanding(1)	134		227		—		197
	29,311		29,156		29,086		29,022
Diluted earnings (loss) per share	$	0.05	$	0.11	$	(3.43)	$	0.18

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(1) For the nine months ended September 30, 2020, 213 thousand shares related to restricted stock were excluded from the calculation of diluted EPS due to the net loss for the period.