Earnings Per Share

6 Months Ended

Jun. 30, 2019

The two-class method is utilized for the computation of the Company’s earnings per share (“EPS”). The two-class method requires a portion of net income to be allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends. The Company’s restricted stock awards are participating securities. Income allocated to these participating securities is excluded from net earnings available to common shares, as shown in the table below. Basic EPS is computed by dividing net income available to basic common shares by the weighted average number of basic common shares outstanding during the period. Diluted EPS is computed by dividing net income available to diluted common shares by the weighted average number of dilutive common shares outstanding during the period.

The following table sets forth the calculation of EPS for the three and six months ended June 30, 2019 and 2018 (in thousands, except per share amounts):



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Weighted average basic common shares outstanding	17,908		20,036		17,853		20,167
Dilutive effect of stock awards and employee stock purchases, net of assumed repurchase of treasury stock	22		10		25		9
Weighted average dilutive common shares	17,930		20,046		17,878		20,176
Basic
Net income (loss)	$	49,225	$	56,463	$	87,873	$	92,277
Less: Earnings (loss) allocated to participating securities	1,844		1,916		3,303		3,123
Net income (loss) available to basic common shares	$	47,381	$	54,547	$	84,570	$	89,154
Basic earnings (loss) per common share	$	2.65	$	2.72	$	4.74	$	4.42
Diluted
Net income (loss)	$	49,225	$	56,463	$	87,873	$	92,277
Less: Earnings (loss) allocated to participating securities	1,842		1,916		3,299		3,123
Net income (loss) available to diluted common shares	$	47,383	$	54,547	$	84,574	$	89,154
Diluted earnings (loss) per common share	$	2.64	$	2.72	$	4.73	$	4.42