9.	EARNINGS PER SHARE

Net income per share of the Company's former class A common stock and former class B common stock was computed using the

two

-class method. Basic net income per share is computed by allocating undistributed earnings to common shares and using the weighted-average number of common shares outstanding during the period.

Diluted net income per share is computed using the weighted-average number of common shares and, if dilutive, the potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and vesting of restricted stock. The dilutive effect of outstanding stock options is reflected in diluted earnings per share by application of the treasury stock method.

The liquidation rights and the rights upon the consummation of an extraordinary transaction were the same for the holders of the Company's former class A common stock and former class B common stock. Other than share distributions and liquidation rights, the amount of any dividend or other distribution payable on each share of former class A common stock was equal to

one

sixth

(

1/6th

) of the amount of any such dividend or other distribution payable on each share of former class B common stock until the Recapitalization. As a result, the undistributed earnings for each period are allocated based on the contractual participation rights of the former class A and former class B common stock as if the earnings for the period had been distributed.

As described in Note

the Company completed a Recapitalization in

April 2018

which settled all then-existing outstanding class B share-based awards, resulted in the elimination of the class B common stock and reclassified class A common stock to Common Stock. The Recapitalization was effective on

April 17, 2018.

Therefore, income was allocated between the former class A and class B common stock using the

two

-class method through

April 16, 2018,

and fully allocated to the Common Stock (formerly class A) following the Recapitalization.

For the

three

months ended

September 30, 2018,

107,512

options of former class A shares have been excluded from the diluted net income per share computation because the exercise or grant price exceeded the fair market value.

	For the Three Months Ended September 30, 2018					For the Three Months Ended September 30, 2017
	Common Stock (formerly Class A)			Class B Common Stock		Common Stock (formerly Class A)			Class B Common Stock
	(In thousands, except per share data)
Numerator for net income per share - basic:
Net income	$	6,992		$	--	$	2,062		$	2,091
Allocation of distributed and undistributed income to unvested restricted stock shareholders		(22	)		--		(15	)		(15	)
Net income attributable to common shareholders	$	6,970		$	--	$	2,047		$	2,076
Denominator for net income per share - basic:
Weighted average common shares outstanding - basic		24,671			--		20,788			3,514
Net income per share – basic	$	0.28		$	--	$	0.10		$	0.59
Numerator for net income per share - diluted:
Net income attributable to common shareholders for basic computation	$	6,970		$	--	$	2,047		$	2,076
Denominator for net income per share - diluted:
Weighted average common shares outstanding - basic		24,671			--		20,788			3,514
Weighted average effect of dilutive securities – stock options		855			--		952			106
Denominator for diluted earnings per share – adjusted weighted average shares		25,526			--		21,740			3,620
Net income per share – diluted	$	0.27		$	--	$	0.09		$	0.57

For the

nine

months ended

September 30, 2018

and

2017,

the Company had

36,231

and

91,385

options of former class A shares, respectively, and for the

nine

months ended

September 30, 2017

15,231

options of class B shares, which have been excluded from the diluted net income per share computation because the exercise or grant price exceeded the fair market value. For the

nine

months ended

September 30,

an additional

52,341

options of former class A shares were excluded, as their inclusion would be anti-dilutive.

	For the Nine Months Ended September 30, 2018						For the Nine Months Ended September 30, 2017
	Common Stock (formerly Class A)			Class B Common Stock			Common Stock (formerly Class A)			Class B Common Stock
	(In thousands, except per share data)
Numerator for net income per share - basic:
Net income	$	17,622		$	4,624		$	8,151		$	8,275
Allocation of distributed and undistributed income to unvested restricted stock shareholders		(61	)		(18	)		(63	)		(64	)
Net income attributable to common shareholders	$	17,561		$	4,606		$	8,088		$	8,211
Denominator for net income per share - basic:
Weighted average common shares outstanding - basic		23,184			3,527			20,759			3,514
Net income per share – basic	$	0.76		$	1.31		$	0.39		$	2.34
Numerator for net income per share - diluted:
Net income attributable to common shareholders for basic computation	$	17,561		$	4,606		$	8,088		$	8,211
Denominator for net income per share - diluted:
Weighted average common shares outstanding – basic		23,184			3,527			20,759			3,514
Weighted average effect of dilutive securities – stock options		899			101			778			81
Denominator for diluted earnings per share – adjusted weighted average shares		24,083			3,628			21,537			3,595
Net income per share – diluted	$	0.73		$	1.27		$	0.38		$	2.28