Earnings Per Share

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Earnings Per Share

15. Earnings Per Share

We use the two-class method of calculating EPS, where applicable, as our previously issued non-vested restricted stock awards had non-forfeitable rights to dividends and, accordingly, represent 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. We use the treasury stock method to calculate the dilutive effect of our RSUs and PSUs as these awards do not have participating rights.

The following table sets forth the computation of basic and diluted EPS for the three and nine months ended September 30, 2019 and 2018 (in thousands, except share and per share information):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Numerator
Net income	$	27,024	$	17,048	$	59,636	$	70,261
Less: Undistributed earnings allocated to participating securities		—		—		—		(58)
Net income allocable to common stockholders	$	27,024	$	17,048	$	59,636	$	70,203
Denominator
Weighted average common shares outstanding - basic		30,587,487		30,232,376		30,378,860		29,885,858
Dilutive effect of restricted stock units		318,748		322,505		262,334		303,200
Weighted average common shares outstanding - diluted		30,906,235		30,554,881		30,641,194		30,189,058
Earnings per share:
Basic	$	0.88	$	0.56	$	1.96	$	2.35
Diluted	$	0.87	$	0.56	$	1.95	$	2.33

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 common unit equivalents from diluted earnings per share during the three and nine months ended September 30, 2019 related to the PSUs for which performance conditions remain unsatisfied. We excluded 0.3 million common unit equivalents from diluted earnings per share during the three and nine months ended September 30, 2018 related to the PSUs granted during the periods.