Earnings Per Share

9 Months Ended

Jun. 30, 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 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 not included in the calculation of diluted income per share for the three and nine months ended June 30, 2021.

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

	Three Months Ended June 30,					Nine Months Ended June 30,
in thousands, except per share data	2021		2020			2021		2020

Numerator:
Net income (loss) - basic and diluted	$	5,798	$	(28,052	)	$	37,902	$	(26,523	)

Denominator:
Weighted average common shares outstanding - basic		37,825		36,509			37,664		36,315
Dilutive effect of restricted stock awards		1,471		-			1,471		-
Weighted average common shares outstanding - diluted		39,296		36,509			39,135		36,315

Net income (loss) per common share:
Basic	$	0.15	$	(0.77	)	$	1.01	$	(0.73	)
Diluted	$	0.15	$	(0.77	)	$	0.97	$	(0.73	)

We exclude weighted-average potential shares from the calculations of diluted net income (loss) 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 nine months ended June 30, 2021 and 2020.

	Three Months Ended June 30,				Nine Months Ended June 30,
in thousands	2021		2020		2021		2020
Restricted stock unit awards		-		1,531		-		828
Contingently issuable stock awards		-		77		-		26
Conversion option of our Notes		4,677		1,439		4,677		480