Note B — Earnings Per Share

Basic earnings per common share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed using the weighted average number of common shares outstanding during the period plus any potentially dilutive common shares, such as stock options, restricted stock units, and performance-based units calculated using the treasury stock method. Total anti-dilutive shares excluded from the diluted earnings per share were zero for the three and six months ended June 30, 2019 and 54,467 and 119,881 for the three and six months ended June 30, 2018.

Our credit agreement restricts the payment of dividends or other distributions to our shareholders with respect to Hanger, Inc., or any of its subsidiaries.

The reconciliation of the numerators and denominators used to calculate basic and diluted net loss per share are as follows:


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
(in thousands except per share data)	2019		2018		2019		2018

Net income (loss)	$	10,035	$	12,928	$	3,084	$	(9,690)

Weighted average shares outstanding - basic		37,300		36,790		37,152		36,645
Effect of potentially dilutive restricted stock units and options (1)		588		614		738		—
Weighted average shares outstanding - diluted		37,888		37,404		37,890		36,645

Basic income (loss) per share	$	0.27	$	0.35	$	0.08	$	(0.26)

Diluted income (loss) per share	$	0.26	$	0.35	$	0.08	$	(0.26)

(1) In accordance with ASC 260 - Earnings Per Share, during periods of a net loss, shares used to compute diluted per share amounts exclude potentially dilutive shares related to unvested restricted stock units and unexercised options. For the six months ended June 30, 2018, shares excluded were 669,641.