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,
	2020		2019		2020		2019
Numerator:
Net income (in 000's)	$	8,446	$	6,138	$	27,507	$	21,984
Denominator:
Basic weighted-average common shares outstanding		24,192,157		24,317,143		24,237,402		24,400,534
Effect of dilutive securities:
Restricted stock grants		9,450		21,696		879		20,821
Stock options		12,672		—		5,646		—
Diluted weighted-average common shares outstanding		24,214,279		24,338,839		24,243,927		24,421,355
Earnings per share attributable to Legacy Housing Corporation
Basic	$	0.35	$	0.25	$	1.13	$	0.90
Diluted	$	0.35	$	0.25	$	1.13	$	0.90

The diluted earnings per share calculation excludes 123,624 potential shares for the three months ended September 30, 2019, and excludes 54,446 and 124,498 potential shares for the nine months ended September 30, 2020 and 2019, respectively because the effect of including theses potential shares would be antidilutive.