EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2020

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,
	2020		2019
Numerator:
Net income (in 000's)	$	37,995	$	28,844
Denominator:
Basic weighted-average common shares outstanding		24,226,128		24,379,667
Effect of dilutive securities:
Restricted stock grants		-		26,396
Stock options		10,267		30,891
Diluted weighted-average common shares outstanding		24,236,395		24,436,954
Earnings per share attributable to Legacy Housing Corporation
Basic	$	1.57	$	1.18
Diluted	$	1.57	$	1.18

The diluted earnings per share calculation excludes 35,935 and 143,027 potential shares for the years ended December 31, 2020 and 2019, respectively, because the effect of including these potential shares would be antidilutive.