Earnings Per Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Share

19. Earnings Per Share

During the years ended December 31, 2018 and 2017, we used the two-class method of calculating earnings per share (EPS) as our previously outstanding unvested RSAs had non-forfeitable rights to dividends, and accordingly represented a participating security. The two-class method is an earnings allocation method under which EPS is calculated for each class of common stock and participating security considering both dividends declared (or accumulated) and participation rights in undistributed earnings as if all such earnings had been distributed during the period. During the year ended December 31, 2019, we used the treasury method to calculate earnings per share.

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2019, 2018 and 2017 (in thousands, except share and per share information):

	Year ended December 31,
	2019		2018		2017
Numerator
Net income	$	112,994	$	96,455	$	50,295
Less: Undistributed earnings allocated to participating securities		—		(59)		(384)
Net income allocable to common stockholders	$	112,994	$	96,396	$	49,911
Denominator
Weighted average common shares outstanding - basic		30,886,382		30,084,913		24,280,871
Dilutive effect of restricted stock units		300,570		306,433		274,638
Weighted average common shares outstanding - diluted		31,186,952		30,391,346		24,555,509
Earnings per share:
Basic	$	3.66	$	3.20	$	2.06
Diluted	$	3.62	$	3.17	$	2.03

Stock-based awards are excluded from the calculation of diluted EPS in the event they are subject to unsatisfied performance conditions or are antidilutive. We excluded 0.6 million and 0.3 million common stock unit equivalents from diluted earnings per share during the year ended December 31, 2019 and 2018, respectively, related to the PSUs for which performance conditions remained unsatisfied. We did not have any common stock unit equivalents to exclude from diluted earnings per share during the year ended December 31, 2017.