Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2018

Basic and Diluted Earnings (Loss) Per Common Share

Earnings (Loss) Per Share

8. Earnings (Loss) Per Share

Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the reported periods. Diluted EPS reflects the potential dilution that could occur under the treasury stock method if stock options and other commitments to issue common stock were exercised, except in loss periods where the effect would be antidilutive. For the three months ended September 30, 2018, approximately 135,000 common shares have been excluded from the calculation of diluted EPS because the effect of their inclusion would have been antidilutive. For the three months ended September 30, 2017, since we reported a net loss, all potential shares totaling approximately 634,000 were excluded from the computation of diluted EPS as their inclusion would have been antidilutive. For the three months ended September 30, 2017, had we reported net income, approximately 229,000 common shares would have been excluded from the calculation of diluted EPS because the effect of their inclusion would have been antidilutive. For the nine months ended September 30, 2018 and 2017, approximately 649,000 and 142,000 common shares, respectively, have been excluded from the calculation of diluted EPS because the effect of their inclusion would have been antidilutive.

A reconciliation of the amounts used in the basic and diluted EPS computation was as follows (in thousands, except per share amounts):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018		2017
Numerator:
Net income (loss)	$	5,971	$	(767	)	$	16,665	$	5,771
Denominator:
Basic EPS - Weighted average number of common shares outstanding		12,050		12,248			11,936		12,418
Dilutive effect of stock awards		745		—			407		907
Diluted EPS - Weighted average number of common shares outstanding		12,795		12,248			12,343		13,325
Net earnings (loss) per share:
Basic	$	0.50	$	(0.06	)	$	1.40	$	0.46
Diluted		0.47		(0.06	)		1.35		0.43