Earnings Per Share

12 Months Ended

Oct. 31, 2020

Basic net (loss) income per common share is calculated using the weighted-average number of common shares outstanding during the period without consideration of the dilutive effect of conversion of preferred stock. Diluted net (loss) income per common share is calculated using the weighted-average number of common shares outstanding during the period plus the dilutive effect of conversion of unvested, restricted stock and preferred stock. The Series B and Series B-2 convertible preferred shares were anti-dilutive for fiscal years ended October 31, 2020 and 2019 and dilutive for fiscal years ended October 31, 2018. The computations for basic and diluted net (loss) income per common share are as follows (in thousands, except per share amounts):


	Year ended October 31,
	2020		2019		2018
Basic net (loss) income per common share:
Net (loss) income applicable to common stock	$	(16,936)	$	(6,444)	$	19,687
Effect of unvested, restricted stock	(44)		(51)		(34)
Numerator: Net (loss) income for basic EPS	(16,980)		(6,495)		19,653
Denominator: Weighted average common shares-basic	17,666		17,580		15,581
Basic net (loss) income per common share	$	(0.96)	$	(0.37)	$	1.26

Diluted net (loss) income per common share:
Numerator: Net (loss) income for diluted EPS	$	(16,980)	$	(6,495)	$	20,188
Weighted average common shares-basic	17,666		17,580		15,581
Effect of dilutive unvested, restricted stock and preferred stock	—		—		628
Denominator: Weighted average common shares-diluted	17,666		17,580		16,209
Diluted net (loss) income per common share	$	(0.96)	$	(0.37)	$	1.25

Diluted (losses) earnings per common share are computed using the more dilutive method of either the two-class method or the treasury stock method. Unvested stock-based compensation awards that contain non-forfeitable rights to dividends as participating shares are included in computing earnings per share. The Company’s unvested, restricted stock awards qualify as participating shares. The Company excluded 164,000, 119,000 and 70,000, unvested, restricted shares, as calculated under the treasury stock method, from its computation of diluted (losses) earnings per share for the fiscal years ended October 31, 2020, 2019 and 2018, respectively.