Earnings Per Share

12 Months Ended

Dec. 31, 2021

Basic net income per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share assumes the conversion of all potentially dilutive securities and is calculated by dividing net income by the sum of the weighted average number of shares of common stock outstanding plus all potentially dilutive securities. Dilutive common shares consist primarily of stock options and restricted stock awards.

Dilutive shares related to the contingent consideration payable to former owners of BasX (Note 4) are included in the calculation of diluted weighted average shares once it is determinable that BasX will satisfy the post-closing earn-out milestones under the terms of the MIPA agreement. The shares will be included in basic weighted average share once they are legally issued and no longer contingent.

The following table sets forth the computation of basic and diluted earnings per share:


	2021		2020		2019
Numerator:	(in thousands, except share and per share data)
Net income	$	58,758	$	79,009	$	53,711
Denominator:
Basic weighted average shares	52,404,199		52,168,679		52,079,865
Effect of dilutive shares related to stock based compensation1	1,301,698		892,490		555,550
Effect of dilutive shares related contingent consideration2	23,092		—		—
Diluted weighted average shares	53,728,989		53,061,169		52,635,415
Earnings per share:
Basic	$	1.12	$	1.51	$	1.03
Dilutive	$	1.09	$	1.49	$	1.02
Anti-dilutive shares:
Shares	304,029		364,787		1,868,087
1 Dilutive shares related to stock options, restricted stock, PSUs and Key Employee Awards (Note 17)
2 Dilutive shares related contingent shares issued to former owners of BasX (Note 4)