Note 3 —Earnings Per Common Share

Basic earnings per share was determined by dividing net income allocable to common stockholders for each period by the weighted average number of shares of common stock outstanding during the applicable period. Net income is also allocated to the unvested restricted stock outstanding during each period, as the restricted stock is entitled to receive dividends and is therefore considered a participating security. As of March 31, 2019, the shares of common stock underlying the restricted stock units (the “RSUs”) awarded under the 2016 Incentive Plan are excluded from the basic earnings per share calculation, as these units are not participating securities.

Diluted earnings per share reflects the potential dilution that could occur if securities or other rights exercisable for, or convertible into, common stock were exercised or converted or otherwise resulted in the issuance of common stock that shared in the earnings of the Company.

The following table identifies the number of shares of common stock underlying the RSUs that are included in determining the diluted weighted average number of shares of common stock:

Three Months Ended

March 31, 2019 (b)

March 31, 2018 (c)

Return on

Stockholder

Return on

Stockholder

Date of Award and Total Number

Capital

Return

Capital

Return

of Underlying Shares (a)

metric

Total

metric

Total

September 26, 2017

76,250 shares

(d)

33,611

38,125

71,736

37,612

—

37,612

July 1, 2018

76,250 shares

(e)

31,344

38,125

69,469

n/a

64,955

76,250

141,205

37,612

—

37,612

(a)

The RSUs awarded in 2017 and 2018 vest, subject to satisfaction of the applicable market and/or performance conditions, on June 30, 2020 and 2021, respectively.

(b)

Reflects the number of shares underlying RSUs that would be issued assuming the measurement date used to determine whether the applicable conditions are satisfied is March 31, 2019.

(c)

Reflects the number of shares underlying RSUs that would be issued assuming the measurement date used to determine whether the applicable conditions are satisfied is March 31, 2018.

(d)

None of the remaining 4,514 shares and 38,638 shares are included at March 31, 2019 and 2018, respectively, as the applicable condition had not been met for these shares at the respective measurement dates.

(e)

None of the remaining 6,781 shares are included at March 31, 2019, as the applicable conditions had not been met for these shares at the measurement date.

See Note 11 for information regarding the Company’s equity incentive plans.

The following table provides a reconciliation of the numerator and denominator of earnings per share calculations (amounts in thousands, except per share amounts):


	Three Months Ended
	March 31,
	2019		2018
Numerator for basic and diluted earnings per share:
Net income	$	4,011	$	6,653
Less net income attributable to non-controlling interests		(40)		(802)
Less earnings allocated to unvested restricted stock (a)		(311)		(293)
Net income available for common stockholders: basic and diluted	$	3,660	$	5,558

Denominator for basic earnings per share:
Weighted average number of common shares		18,894		18,396
Effect of diluted securities:
RSUs		99		38
Denominator for diluted earnings per share:
Weighted average number of shares		18,993		18,434

Earnings per common share, basic	$	.19	$	.30
Earnings per common share, diluted	$	.19	$	.30

(a)

Represents an allocation of distributed earnings to unvested restricted stock that, as participating securities, are entitled to receive dividends.