EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2017

Basic earnings per share (“EPS”) is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the assumed conversion of all dilutive securities using the treasury stock method.

Basic and diluted EPS are calculated as follows for the three months ended March 31:



(in thousands, except per share data)	2017		2016

Net income attributable to Altisource	$	6,545	$	18,494

Weighted average common shares outstanding, basic	18,662		18,855
Dilutive effect of stock options and restricted shares	642		1,185

Weighted average common shares outstanding, diluted	19,304		20,040

Earnings per share:
Basic	$	0.35	$	0.98

Diluted	$	0.34	$	0.92

For the three months ended March 31, 2017 and 2016, 0.4 million options and 0.4 million options, respectively, that were anti-dilutive have been excluded from the computation of diluted EPS. These options were anti-dilutive and excluded from the computation of diluted EPS because their exercise price was greater than the average market price of our common stock. Also excluded from the computation of diluted EPS are 0.2 million options and 0.3 million options for the three months ended March 31, 2017 and 2016, respectively, granted for shares that begin to vest upon the achievement of certain market criteria related to our common stock price, performance criteria and an annualized rate of return to shareholders that have not yet been met.