Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2023

The Company computes basic earnings (loss) per share by dividing net income (loss) by the weighted-average common shares outstanding during the year. Diluted earnings (loss) per share is calculated to give effect to all potentially dilutive common shares that were outstanding during the year. Weighted-average diluted common shares outstanding primarily reflect the additional shares that would be issued upon the assumed exercise of stock options and the assumed vesting of unvested share awards. The treasury stock method has been used to compute diluted earnings (loss) per share for the three and six months ended June 30, 2023 and 2022.

The Company issued Stock Appreciation Rights (“SARs”) and Restricted Stock Awards (“RSAs”), all of which have been evaluated for their potentially dilutive effect under the treasury stock method. See Note 13. Stock-Based Compensation in the Company’s 2022 Annual Report for additional information on the SARs and the RSAs.

The computations of basic and diluted earnings (loss) per share are as follows:


(in thousands, except per share basis)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net income (loss)	$	6,417	$	1,358	$	10,141	$	(1,241)





Denominator:
Shares used in computing net income (loss) per share:
Weighted-average common shares outstanding – basic	22,952		22,927		22,952		22,927
Effect of dilutive securities	14		13		15		—
Weighted-average common shares outstanding — diluted	22,966		22,940		22,967		22,927

Earnings (Loss) per common share:
Earnings (Loss) per share of common stock – basic	$	0.28	$	0.06	$	0.44	$	(0.05)
Earnings (Loss) per share of common stock – diluted	$	0.28	$	0.06	$	0.44	$	(0.05)

The aggregate number of shares excluded from the diluted earnings (loss) per share calculations, because they would have been anti-dilutive, was 0.1 million for both the three months ended June 30, 2023 and 2022, respectively, and 0.1 million and 0.2 million for the six months ended June 30, 2023 and 2022, respectively. For the three and six months ended June 30, 2023 and 2022, SARs and RSAs were not included in the diluted earnings (loss) per share calculations as they would have been anti-dilutive (1) due to the losses reported in the Consolidated Statements of Operations or (2) the Company’s average stock price was less than the exercise price of the SARs or the grant price of the RSAs.