Earnings per Share

12 Months Ended

Sep. 30, 2021

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 net income per share computations for the periods presented below.


	Year Ended September 30,
(in millions, except share amounts)	2021		2020		2019
Numerator:
Net income	$	116.3	$	169.6	$	85.1
Less: Allocation to participating securities	(3.5)		(4.0)		(1.5)
Net income allocated to common stockholders	$	112.8	$	165.6	$	83.6
Denominator:
Weighted average number of:
Common shares outstanding	19,130,643		18,824,328		18,738,905
Dilutive potential common shares outstanding:
Share-based awards	547,525		356,151		275,490
Diluted shares outstanding	19,678,168		19,180,479		19,014,395

The dilutive effect of share-based awards is reflected in diluted net income per share by application of the treasury stock method, which includes consideration of unamortized share-based compensation expense.

Options to purchase 298,786, 898,420 and 907,089 shares of common stock for the years ended September 30, 2021, 2020, and 2019, respectively, were excluded from the calculation of diluted earnings per share because they would have been anti-dilutive.