6. Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if dilutive securities were exercised into common stock. Stock options, restricted stock, restricted stock units and deferred stock units are considered dilutive securities. For the three- and six- month periods ended June 30, 2017 and 2016, 0.2 million shares of such securities, respectively, were outstanding but were not included in the computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of the common shares and, therefore, the effect would be antidilutive. An additional 0.2 million shares of common stock outstanding for the six months ended June 30, 2017 were excluded from the computation of diluted earnings per share due to the net loss. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2017		2016		2017			2016
Numerator:
Net income (loss)	$	5,096	$	12,933	$	(183,498	)	$	29,463
Denominator:
Denominator for basic earnings per share -
weighted average shares		36,673		36,512		36,659			36,552
Effect of dilutive securities:
Employee stock options and restricted stock ⁽¹⁾		200		398		-			345
Denominator for diluted earnings per share -
Adjusted weighted average shares and the effect of dilutive securities		36,873		36,910		36,659			36,897
Net income (loss) per share:
Net income (loss) per share - basic	$	0.14	$	0.35	$	(5.01	)	$	0.81
Net income (loss) per share - diluted ⁽²⁾	$	0.14	$	0.35	$	(5.01	)	$	0.80

(1)

The effect of dilutive securities for employee stock options and restricted stock in the three and six months ended June 30, 2017 was affected by the adoption of ASU 2016-09 at the beginning of the year. In accordance with the standard, the effect of dilutive securities in the calculation of diluted net income per share was applied prospectively and results for the three and six months ended June 30, 2016 have not been revised.

(2)

As a result of the net loss in the six months ended June 30, 2017, the effect of potentially dilutive securities would have been anti-dilutive and has been omitted from the calculation of diluted earnings per share.

Common Stock Repurchases

As of June 30, 2017 , the Company had Board authorization to repurchase $68.2 million of common stock. During the three and six months ended June 30, 2017, the Company did not repurchase any shares of its common stock. During the three months ended June 30, 2016, the Company did not repurchase any shares of its common stock. For the six months ended June 30, 2016, the Company repurchased 241,270 shares at an aggregate cost of $6.8 million. Depending on the market and business conditions and other factors, the Company may continue or suspend purchasing its common stock at any time without notice. Acquired shares are included in the issued shares of the Company and treasury stock, but are not included in average shares outstanding when calculating earnings per share data.