EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2019

15. EARNINGS PER SHARE

Basic earnings per common share (“EPS”) is computed based on the weighted-average number of common shares outstanding during the 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.


	Year ended
	December 31,
	2019		2018
Numerator:
Net income (in 000's)	$	28,844	$	21,513
Denominator:
Basic weighted-average common shares outstanding		24,379,667		20,197,260
Effect of dilutive securities:
Restricted stock grants		26,396		—
Stock options		30,891		—
Diluted weighted-average common shares outstanding		24,436,954		20,197,260
Earnings per share attributable to Legacy Housing Corporation
Basic	$	1.18	$	1.07
Diluted	$	1.18	$	1.07

The diluted earnings per share calculation excludes 143,027 potential shares for the year ended December 31, 2019, because the effect of including these potential shares would be antidilutive. There were no potential shares excluded from the December 31, 2018 diluted earnings per share calculation.