(

)

EARNINGS PER SHARE

Prior to the Recapitalization, 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 was 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 was 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

(

1/6

) of the amount of any such dividend or other distribution payable on each share of former class B common stock. As a result, the undistributed earnings for each period were allocated based on the contractual participation rights of the former class A and former class B common stock as if the earnings for the year 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, resulting 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 stock using the

two

-class method through

April 16, 2018,

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

The Company had

137,453

and

72,860

options of Common Stock (former class A shares) for the

three

-month periods ended

March 31, 2019

and

2018,

respectively which have been excluded from the diluted net income per share computation because their inclusion would be anti-dilutive.

	For the Three Months Ended March 31, 2019			For the Three Months Ended March 31, 2018
	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	$	8,196		$	3,630		$	3,676
Allocation of distributed and undistributed income to unvested restricted stock shareholders		(28	)		(15	)		(14	)
Net income attributable to common shareholders	$	8,168		$	3,615		$	3,662
Denominator for net income per share - basic:
Weighted average common shares outstanding - basic		24,766			20,884			3,527
Net income per share – basic	$	0.33		$	0.17		$	1.04
Numerator for net income per share - diluted:
Net income attributable to common shareholders for basic computation	$	8,168		$	3,615		$	3,662
Denominator for net income per share - diluted:
Weighted average common shares outstanding - basic		24,766			20,884			3,527
Weighted average effect of dilutive securities – stock options		743			953			103
Denominator for diluted earnings per share – adjusted weighted average shares		25,509			21,837			3,630
Net income per share – diluted	$	0.32		$	0.17		$	1.01