Earnings per Share

9 Months Ended

Sep. 30, 2022

Earnings per Share

Net income is divided by the weighted average number of common shares outstanding during the period to calculate basic earnings per share. Diluted earnings per share is calculated to give effect to stock options and RSUs. The following table summarizes the dilutive effect of RSUs and options to purchase common stock for the nine months ended September 30, 2022 and 2021:


	Three months ended September 30,		Nine months ended September 30,
	2022	2021	2022	2021
Weighted average common shares—basic	41,995,027	42,889,922	42,363,919	43,061,707
Dilutive effect of restricted stock units	186,413	204,177	226,858	267,675
Dilutive effect of stock options	—	—	—	16,395
Weighted average common shares—diluted	42,181,440	43,094,099	42,590,777	43,345,777

In March 2020, the Company announced its Board of Directors had authorized the Company to increase the purchase of its common stock up to $250 million in the aggregate. This announcement represented the most recent update from the initial authorization, approved in November 2015, of up to $50 million of purchases in the aggregate of its common stock. In the three and nine months ended September 30, 2022, the Company purchased 76,167 and 1,004,154 shares of its outstanding common stock for $2.1 million and $30.0 million, respectively. During the three and nine months ended September 30, 2021, the Company purchased 129,866 and 570,084 shares of its outstanding common stock for $4.0 million and $18.2 million, respectively. As of September 30, 2022, the Company has $112.7 million remaining under the repurchase authorization.

Holders of common stock are entitled to dividends at the discretion of the Company's Board of Directors. In 2021, the Company's Board of Directors declared the first dividend since the Company's initial public offering in 2007. During the three months ended September 30, 2022, the Company's cash dividends declared were $0.04 per share of common stock, and total dividends declared and paid on common shares in the three and nine months ended September 30, 2022 were $1.7 million and $5.2 million, respectively. No dividends were declared or paid during the three and nine months ended September 30, 2021.