Earnings Per Share

3 Months Ended

Mar. 31, 2024

NOTE 9. Earnings Per Share

Basic earnings per share is calculated by dividing Net income by the weighted-average number of shares of the Company's common stock outstanding. Diluted earnings per share is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of shares under stock-based compensation plans, unless the inclusion of such shares would have an anti-dilutive impact. As part of the AccuTrade acquisition, the Company may pay up to $15.0 million of the contingent consideration in shares of the Company's common stock at a future date. Those potential shares have been excluded from the computations below because they are contingently issuable shares, and the contingency to which the issuance relates was not met at the end of the reporting period. The computation of Earnings per share is as follows (in thousands, except per share data):


	Three Months Ended March 31,
	2024		2023
Net income	$	784	$	11,479
Basic weighted-average common shares outstanding		66,318		66,530
Effect of dilutive stock-based compensation awards (1)		973		1,217
Diluted weighted-average common shares outstanding		67,291		67,747
Earnings per share, basic	$	0.01	$	0.17
Earnings per share, diluted		0.01		0.17

(1)

There were 1,416 and 554 potential common shares excluded from diluted weighted-average common shares outstanding for the three months ended March 31, 2024 and 2023, respectively, as their inclusion would have had an anti-dilutive effect.