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EARNINGS PER SHARE
 12 Months Ended
Dec. 31, 2016
Earnings Per Share [Abstract]  
EARNINGS PER SHARE
EARNINGS PER SHARE
Basic earnings per share is computed by dividing net income or loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is similar to basic earnings per share except net income or loss is adjusted by the impact of the assumed issuance of convertible shares and the weighted-average number of shares of common stock outstanding (which includes potentially dilutive securities, such as options, warrants, non-vested shares, and additional shares issuable under convertible notes outstanding during the period when such potentially dilutive securities are not anti-dilutive). Potentially dilutive securities from options, warrants and unvested restricted shares are calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of all options and warrants with exercise prices exceeding the average market value are used to repurchase common stock at market value. The incremental shares remaining after the proceeds are exhausted represent the potentially dilutive effect of the securities. Potentially dilutive securities from convertible promissory notes are calculated based on the assumed issuance at the beginning of the period, as well as any adjustment to income that would result from their assumed issuance. For 2016 and 2015, potentially dilutive securities of 4.4 million and 4.5 million, respectively, were excluded from the diluted loss per share calculation because including them would have been anti-dilutive in both periods.
The following table provides a reconciliation of net loss for continuing and discontinued operations and the number of shares used in the computation of both basic and diluted earnings per share:
 
 
Year Ended December 31,
 
 
2016
 
2015
(Amounts in 000's, except per share data)
 
Income (loss)
 
Shares (1)
 
Per
Share
 
Loss
 
Shares (1)
 
Per
Share
Continuing Operations:
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
 
$
5,966

 
 
 
 
 
$
(17,811
)
 
 
 
 
Preferred stock dividends
 
(7,335
)
 
 
 
 
 
(5,208
)
 
 
 
 
    Basic loss from continuing operations
 
$
(1,369
)
 
19,892

 
$
(0.07
)
 
$
(23,019
)
 
19,680

 
$
(1.17
)
    Diluted loss from continuing operations
 
$
(1,369
)
 
19,892

 
$
(0.07
)
 
$
(23,019
)
 
19,680

 
$
(1.17
)
Discontinued Operations:
 
 
 
 
 
 
 
 
 
 
 
 
Loss from discontinued operations
 
$
(13,428
)
 
 
 
 
 
$
(4,892
)
 
 
 
 
Net loss attributable to noncontrolling interests
 
—

 
 
 
 
 
815

 
 
 
 
Basic Loss from discontinued operations attributable to the Company
 
$
(13,428
)
 
19,892

 
$
(0.67
)
 
$
(5,707
)
 
19,680

 
$
(0.29
)
Diluted Loss from discontinued operations attributable to the Company
 
$
(13,428
)
 
19,892

 
$
(0.67
)
 
$
(5,707
)
 
19,680

 
$
(0.29
)
Net Loss Attributable to AdCare:
 
 
 
 
 
 
 
 
 
 
 
 
Basic loss
 
$
(14,797
)
 
19,892

 
$
(0.74
)
 
$
(28,726
)
 
19,680

 
$
(1.46
)
Diluted loss
 
$
(14,797
)
 
19,892

 
$
(0.74
)
 
$
(28,726
)
 
19,680

 
$
(1.46
)

(1)
Securities outstanding that were excluded from the computation, prior to the use of the treasury stock method, because they would have been anti-dilutive are as follows:
 
 
December 31,
(Amounts in 000’s)
 
2016
 
2015
Stock options
 
355

 
267

Common stock warrants - employee
 
1,450

 
1,559

Common stock warrants - nonemployee
 
437

 
492

Shares issuable upon conversion of convertible debt
 
2,165

 
2,165

Total shares
 
4,407

 
4,483