Earnings Per Share

3 Months Ended

Dec. 31, 2021

Note 4. Earnings Per Share

Basic earnings per share is computed by dividing net income 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 14) 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 following table presents the reconciliation of the numerator and denominator for calculating net income per share:

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

Numerator:
Net income - basic and diluted	$	19,044	$	20,941
Interest on Convertible Senior Notes, net of tax		1,911		1,831
Net income - diluted	$	20,955	$	22,772

Denominator:
Weighted average common shares outstanding - basic		38,839		37,180
Dilutive effect of restricted stock awards		854		1,506
Dilutive effect of the Notes		4,677		4,677
Weighted average common shares outstanding - diluted		44,370		43,363

Net income per common share:
Basic	$	0.49	$	0.56
Diluted	$	0.47	$	0.53

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. For the three months ended December 31, 2021 and 2020, no shares were considered anti-dilutive.