EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2020

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
	March 31,
	2020		2019
Numerator:
Net income (in 000's)	$	9,025	$	7,213
Denominator:
Basic weighted-average common shares outstanding		24,319,328		24,516,762
Effect of dilutive securities:
Restricted stock grants		7,749		54,326
Stock options		34,006		—
Diluted weighted-average common shares outstanding		24,361,083		24,571,088
Earnings per share attributable to Legacy Housing Corporation
Basic	$	0.37	$	0.29
Diluted	$	0.37	$	0.29

The diluted earnings per share calculation excludes 144,082 and 51,467 potential shares for the three months ended March 31, 2020 and 2019, respectively because the effect of including theses potential shares would be antidilutive.