Earnings Per Share

3 Months Ended

Dec. 31, 2016

Basic net income per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares result from dilutive common stock options and restricted stock units. The following table is a reconciliation of the numerators and denominators in the net income per common share calculations (in thousands, except per common share data):



	Three months ended December 31,
	2016		2015
Numerator:
Income from continuing operations	$	2,357	$	3,131
Income from discontinued operations, after income taxes	—		3,319
Net income	$	2,357	$	6,450

Denominator:
Denominator for basic net income per common share — weighted average shares outstanding	26,175		25,331
Effect of dilutive securities:
Stock options and restricted stock units	797		840
Denominator for diluted net income per common share — adjusted weighted average shares	26,972		26,171

Basic net income per common share:
Continuing operations	$	0.09	$	0.12
Discontinued operations	$	—	$	0.13
Net income	$	0.09	$	0.25
Diluted net income per common share:
Continuing operations	$	0.09	$	0.12
Discontinued operations	$	—	$	0.13
Net income	$	0.09	$	0.25

For the three months ended December 31, 2016 and 2015, there were 1,108,900 and 902,084 potentially dilutive shares, respectively, related to stock options to purchase common shares that were not included in the above computation of diluted earnings per common share. This is because the options’ exercise prices were greater than the average market price of our common shares.