Quarterly report pursuant to Section 13 or 15(d)

Earnings per Share

v3.8.0.1
Earnings per Share
3 Months Ended
Mar. 31, 2018
Earnings Per Share [Abstract]  
Earnings per Share

5. Earnings per share

Earnings per share (EPS) is computed in accordance with ASC 260—Earnings per Share and is calculated using the weighted-average number of common shares outstanding during each period. Diluted EPS assumes the conversion, exercise or issuance of all potential common stock equivalents (which can include dilution of outstanding stock options, restricted stock units and restricted stock awards) unless the effect is to reduce a loss or increase the income per share. For purposes of this calculation, common stock subject to repurchase by the Company, options are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive.

Basic earnings per share is calculated using the Company’s weighted-average outstanding common shares. Diluted earnings per share is calculated using the Company’s weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method.

The computation of EPS is as follows:

 

 

 

Three months ended March 31,

 

 

 

2018

 

 

2017

 

Numerator—basic and diluted:

 

 

 

 

 

 

 

 

Net income

 

$

10,758

 

 

$

5,932

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

Weighted-average common shares - basic common stock (1)

 

 

21,026,154

 

 

 

20,489,532

 

Weighted-average common shares - diluted common stock

 

 

22,295,213

 

 

 

21,579,721

 

 

 

 

 

 

 

 

 

 

Net income per share - basic common stock

 

$

0.51

 

 

$

0.29

 

Net income per share - diluted common stock

 

$

0.48

 

 

$

0.27

 

 

 

 

 

 

 

 

 

 

Denominator calculation from basic to diluted:

 

 

 

 

 

 

 

 

Weighted-average common shares - basic common stock (1)

 

 

21,026,154

 

 

 

20,489,532

 

Stock options and other dilutive awards

 

 

1,269,059

 

 

 

1,090,189

 

Weighted-average common shares - diluted common stock

 

 

22,295,213

 

 

 

21,579,721

 

Shares excluded from diluted weighted-average shares:

 

 

 

 

 

 

 

 

Stock options

 

 

 

 

 

25,700

 

Restricted stock units and restricted stock awards

 

 

75,926

 

 

 

 

Shares excluded from diluted weighted-average shares

 

 

75,926

 

 

 

25,700

 

 

(1)  Unvested restricted stock units and restricted stock awards are not included as shares outstanding in the calculation of basic earnings per share. Vested restricted stock units and restricted stock awards are included in basic earnings per share if all vesting and performance criteria have been met. Performance-based restricted stock units and restricted stock awards are included in the number of shares used to calculate diluted earnings per share as long as all applicable performance criteria are met, and their effect is dilutive. Restricted stock awards are eligible to receive all dividends declared on the Company’s common shares during the vesting period; however, such dividends are not paid until the restrictions lapse.

The computations of diluted net income attributable to common stockholders exclude common stock options, restricted stock units and restricted stock awards, which were anti-dilutive for the three months ended March 31, 2018 and March 31, 2017, respectively.