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 March 31,						Six Months Ended March 31,
(in millions, except share amounts)	2019			2018			2019			2018
Numerator:
Net income	$	23.4		$	22.7		$	41.6		$	15.8
Less: Allocation to participating securities	(0.4		)	(0.3		)	(0.7		)	(0.3		)
Net income allocated to common stockholders	$	23.0		$	22.4		$	40.9		$	15.5
Denominator:
Weighted average number of:
Common shares outstanding	18,753,490			18,559,849			18,706,104			18,502,795
Dilutive potential common shares outstanding:
Share-based awards	251,303			299,484			293,785			333,418
Diluted weighted-average common shares	19,004,793			18,859,333			18,999,889			18,836,213

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 1,032,077 and 173,992 shares of common stock for the three months ended March 31, 2019 and 2018, respectively, and options to purchase 704,863 and 136,440 shares of common stock for the six months ended March 31, 2019 and 2018, respectively, were excluded from the calculation of diluted earnings per share as they would have been anti-dilutive