Earnings Per Share
|3 Months Ended
Dec. 31, 2019
|Earnings Per Share [Abstract]
|Earnings Per Share
5. Earnings Per Share
Basic earnings per share (“EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similarly to basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if potentially dilutive common shares had been issued. In the case of a net loss, diluted earnings per share is calculated in the same manner as basic EPS.
For the three months ended December 31, 2019, options for 703,000 weighted average shares were excluded from the diluted EPS calculations because they were anti-dilutive. For the three months ended December 31, 2018, options for 1,198,000 weighted average shares were excluded from the diluted EPS calculations because they were anti-dilutive. These shares could become dilutive in the future.
A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share amounts):