Earnings Per Share

12 Months Ended

Dec. 31, 2019

17 - Earnings Per Share

We have two classes of common stock, which we refer to as Class A common stock and Class B common stock. Our Class A common stock is entitled to be paid cash dividends that are at least 10% higher than the cash dividends we pay on our Class B common stock. Accordingly, we use the

two-class

method for the computation of earnings per common share. The

two-class

method is an earnings allocation formula that determines earnings per share separately for each class of common stock based on dividends declared and an allocation of remaining undistributed earnings using a participation percentage reflecting the dividend rights of each class.

We present below a reconciliation of the numerators and denominators we used in the basic and diluted per share computations for our Class A common stock:


	Year Ended December 31,
(in thousands, except per share amounts)	2019		2018			2017
Basic earnings (loss) per share:
Numerator:
Allocation of net income (loss)	$	38,718	$	(26,691	)	$	5,879

Denominator:
Weighted-average shares outstanding		22,986		22,705			21,799

Basic earnings (loss) per share	$	1.68	$	(1.18	)	$	0.27

Diluted earnings (loss) per share:
Numerator:
Allocation of net income (loss)	$	38,718	$	(26,691	)	$	5,879

Denominator:
Number of shares used in basic computation		22,986		22,705			21,799
Weighted-average effect of dilutive securities
Add: Director and employee stock options		211		—			843

Number of shares used in per share computations		23,197		22,705			22,642

Diluted earnings (loss) per share	$	1.67	$	(1.18	)	$	0.26

We used the following information in the basic and diluted per share computations for our Class B common stock:


	Year Ended December 31,
(in thousands, except per share amounts)	2019		2018			2017
Basic and diluted earnings (loss) per share:
Numerator:
Allocation of net income (loss)	$	8,434	$	(6,069	)	$	1,237

Denominator:
Weighted-average shares outstanding		5,577		5,577			5,577

Basic and diluted earnings (loss) per share	$	1.51	$	(1.09	)	$	0.22

During 2019, we did not include options to purchase 5,531,561 shares of our Class A common stock in the computation of diluted earnings per share because the exercise price of the options was greater than the average market price of our Class A common stock.