Basic and Diluted Earnings per Share

12 Months Ended

Dec. 31, 2020

(13) Basic and Diluted Earnings per Share

Potential shares of common stock are included in the diluted earnings per share calculation when dilutive. Potential shares of common stock, consisting of class A common stock issuable upon exercise of outstanding stock options, class A common stock issuable upon vesting of restricted stock units, and class A common stock issuable upon conversion of the Notes (as to which the Company currently intends to settle the principal in cash and excess value in shares of class A common stock) are calculated using the treasury stock method.

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data) for the periods indicated:

	Years Ended December 31,
	2020			2019		2018
Numerator:
Net income	$	(7,524	)	$	34,355	$	22,501

Denominator:
Weighted average common shares of class A common stock		7,658			8,221		9,340
Weighted average common shares of class B common stock		2,026			2,035		2,035
Total weighted average common stock shares outstanding		9,684			10,256		11,375
Effect of dilutive securities:
Employee stock options		0			72		37
Adjusted weighted average shares		9,684			10,328		11,412

Earnings per share:
Basic earnings per share	$	(0.78	)	$	3.35	$	1.98
Diluted earnings per share	$	(0.78	)	$	3.33	$	1.97

For the years ended December 31, 2020, 2019, and 2018, stock options issued under the 2013 Equity Plan to purchase a weighted average of approximately 1,487,000, 933,000, and 896,000 shares of class A common stock, respectively, were excluded from the diluted earnings per share calculation because their impact would have been anti-dilutive. For the year ended December 31, 2020, restricted stock units issued under the 2013 Equity Plan to issue a weighted average of approximately 10,000 shares of class A common stock were excluded from the diluted earnings per share calculation because their impact would have been anti-dilutive. For the year-ended December 31, 2020, the average market price of the Company’s class A common stock did not exceed the conversion price of the Notes and therefore there is no dilutive impact to earnings per share arising from the Notes.