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				Nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
Numerator:
Net income (in 000's)	$	6,138	$	6,486	$	21,984	$	18,735
Denominator:
Basic weighted-average common shares outstanding		24,317,143		20,000,000		24,400,534		20,000,000
Effect of dilutive securites:
Restricted stock grants		21,696		-		20,821		-
Diluted weighted-average common shares outstanding		24,338,839		20,000,000		24,421,355		20,000,000
Earnings per share attributable to Legacy Housing Corporation
Basic	$	0.25	$	0.32	$	0.90	$	0.94
Diluted	$	0.25	$	0.32	$	0.90	$	0.94

The diluted earnings per share calculation excludes 123,624 potential shares and 124,498 potential shares for the three and nine months ended September 30, 2019 because the effect of including theses potential shares would be antidilutive.