Earnings Per Share

6 Months Ended

Mar. 31, 2021

Note 4. Earnings Per Share

Basic earnings per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period, increased to include the number of shares of common stock that would have been outstanding had potential dilutive shares of common stock been issued. The dilutive effect of restricted stock units is reflected in diluted net income per share by applying the treasury stock method.

The dilutive effect of the Notes (as defined in Note 15) is reflected in net income per share by application of the “if-converted” method. The “if-converted” method is only assumed in periods where such application would be dilutive. In applying the “if-converted” method for diluted net income per share, we would assume conversion of the Notes at a ratio of 26.7271 shares of our common stock per $1,000 principal amount of the Notes. Assumed converted shares of our common stock are weighted for the period the Notes were outstanding. The shares of common stock underlying the conversion option of our Notes were included in the calculation of diluted income per share for the six months ended March 31, 2021.

The following table presents the reconciliation of the numerator and denominator for calculating net income per share:

	Three Months Ended March 31,				Six Months Ended March 31,
in thousands, except per share data	2021		2020		2021		2020

Numerator:
Net income - basic	$	11,163	$	12,812	$	32,104	$	1,529
Interest on Convertible Senior Notes, net of tax		-		-		3,614		-
Net income - diluted	$	11,163	$	12,812	$	35,718	$	1,529

Denominator:
Weighted average common shares outstanding - basic		37,743		36,441		37,583		36,218
Dilutive effect of restricted stock awards		1,434		951		1,470		475
Dilutive effect of the Notes		-		-		4,677		-
Weighted average common shares outstanding - diluted		39,177		37,392		43,730		36,693

Net income per common share:
Basic	$	0.30	$	0.35	$	0.85	$	0.04
Diluted	$	0.28	$	0.34	$	0.82	$	0.04

We exclude weighted-average potential shares from the calculations of diluted net income per share during the applicable periods when their inclusion is anti-dilutive. The following table sets forth potential shares that were considered anti-dilutive during the three and six months ended March 31, 2021 and 2020.

	Three Months Ended March 31,				Six Months Ended March 31,
in thousands	2021		2020		2021		2020
Conversion option of our Notes		4,677		-		-		-