Net Income Per Share Data

9 Months Ended

Jun. 30, 2020

12. Net Income Per Share Data

Basic net income per common share is calculated by dividing net income by 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 and dilutive common equivalent shares outstanding during the period. The Company’s potentially dilutive common shares are those that result from dilutive common stock options, non-vested stock relating to restricted stock awards, restricted stock units, and deferred stock units, as well as performance shares in years prior to fiscal 2020. Options to purchase shares of common stock as well as unvested restricted stock and performance stock units are considered to be potentially dilutive common shares.

The calculation of weighted average diluted shares outstanding excludes outstanding stock options associated with the right to purchase less than 0.1 million and 0.2 million shares of common stock for the three months ended June 30, 2020 and 2019, respectively, and less than 0.1 million and 0.1 million shares of common stock for the nine months ended June 30, 2020 and 2019, respectively, as their inclusion would have had an antidilutive effect on diluted net income per share for those periods.

The following table sets forth the denominator for the computation of basic and diluted net income per share (in thousands):

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Net income available to common shareholders	$	2,459	$	1,466	$	4,069	$	4,038
Basic weighted average shares outstanding		13,601		13,394		13,577		13,384
Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units, deferred stock units and performance shares		185		332		198		392
Diluted weighted average shares outstanding		13,786		13,726		13,775		13,776

The Company’s Board of Directors has authorized the repurchase of up to $25.3 million of the Company’s outstanding common stock. This authorization does not have an expiration date.