14. EARNINGS PER SHARE

Basic earnings per common share (“EPS”) is computed based on the weighted‑average number of common shares outstanding during each reporting period. Diluted EPS is based on the weighted-average number of common shares outstanding plus the number of additional shares that would have been outstanding had the dilutive common shares been issued. The following table reconciles the numerators and denominators used in the computations of both basic and diluted EPS.


	Three months ended				Six months ended
	June 30,				June 30,
	2019		2018		2019		2018
Numerator:
Net income (in 000's)	$	8,633	$	6,888	$	15,846	$	12,248
Denominator:
Basic weighted-average common shares outstanding		24,369,890		20,000,000		24,442,921		20,000,000
Effect of dilutive securites:
Restricted stock grants		-		-		15,046		-
Diluted weighted-average common shares outstanding		24,369,890		20,000,000		24,457,967		20,000,000
Earnings per share attributable to Legacy Housing Corporation
Basic	$	0.35	$	0.34	$	0.65	$	0.61
Diluted	$	0.35	$	0.34	$	0.65	$	0.61

The diluted earnings per share calculation excludes 164,487 potential shares and 149,441 potential shares for the three and six months ended June 30, 2019 because the effect of including theses potential shares would be antidilutive.