Earnings per Share

The Company presents basic and diluted earnings per share (“EPS”) using the two-class method which requires all outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends and therefore participate in undistributed earnings with common stockholders be included in computing earnings per share. Under the two-class method, net income is reduced by the amount of dividends declared in the period for each class of common stock and participating security. The remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends. Restricted stock awards granted to certain employees and directors contain non-forfeitable rights to dividends at the same rate as common stock, and are considered participating securities. Basic EPS has been computed by dividing net income by the weighted-average number of common shares outstanding.

The following is a reconciliation of the numerator and denominator of the diluted earnings per share computations for the periods presented below.



	Three Months Ended June 30,						Nine Months Ended June 30,
(in millions, except share amounts)	2018			2017			2018			2017
Numerator:
Net income	$	24.0		$	12.7		$	39.8		$	30.0
Less: Allocation to participating securities	(0.3		)	(0.3		)	(0.6		)	(0.6		)
Net income allocated to common stockholders	$	23.7		$	12.4		$	39.2		$	29.4
Denominator:
Weighted average number of:
Common shares outstanding	18,597,165			18,447,053			18,524,846			18,365,939
Dilutive potential common shares outstanding:
Share-based awards	379,733			255,075			351,413			293,199
Diluted weighted-average common shares	18,976,898			18,702,128			18,876,259			18,659,138

The dilutive effect of share-based awards is reflected in diluted earnings per share by application of the treasury stock method, which includes consideration of unamortized share-based compensation expense required under the Compensation – Stock Compensation Topic of the ASC.

Options to purchase 76,587 and 210,543 shares of common stock for the three months ended June 30, 2018 and 2017, respectively, and options to purchase 147,640 and 242,778 shares of common stock for the nine months ended June 30, 2018 and 2017, respectively, were excluded from the calculation of diluted earnings per share as they would have been anti-dilutive