Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share
3 Months Ended
Sep. 30, 2018
Earnings Per Share [Abstract]  
Earnings Per Share

Note (4) - Earnings Per Share: The Company computes earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Shares of the Company’s common stock subject to unvested restricted stock awards are considered participating securities because these awards contain a non-forfeitable right to cash dividends paid prior to vesting or forfeiture of the restricted stock, if any, irrespective of whether the awards ultimately vest. Basic and diluted earnings per share for the three months ended September 30, 2018 and 2017 are computed as follows (in thousands, except per share data):

    For the three months ended
September 30,
Net income   $ 796     $ 563  
Less: distributed and undistributed income allocated to unvested restricted common stock     58       44  
Net income allocated to EnviroStar, Inc. shareholders   $ 738     $ 519  
Weighted average shares outstanding used in basic earnings per share     11,236       10,468  
Dilutive common share equivalents     538       381  
Weighted average shares outstanding used in diluted earnings per share     11,774       10,849  
Basic earnings per share   $ 0.07     $ 0.05  
Diluted earnings per share   $ 0.06     $ 0.05  


At September 30, 2018 and 2017, other than 903,102 shares and 890,576 shares, respectively, of restricted common stock discussed above, there were no potentially dilutive securities outstanding.