Income (Loss) Per Share

3 Months Ended

Mar. 31, 2021

Income (Loss) Per Share

Income (Loss) Per Share

Note 2 — Income (Loss) Per Common Share

Basic income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares outstanding during the period. Diluted income per share is calculated by dividing net income by the weighted average number of shares used to calculate basic income (loss) per share plus the weighted average number of common share equivalents outstanding during the period. The dilutive effect of outstanding options to purchase common stock and share-based awards is considered in diluted income per share by application of the treasury stock method. The dilutive effect of performance share units is included in diluted income per common share if the performance targets have been achieved, or would have been achieved if the reporting date was the end of the contingency period. The Company has determined that it has the ability and intent to settle the principal amount of its convertible senior notes in cash, and the excess of the principal portion in shares of its common stock. As such, the Company accounts for the conversion spread using the treasury stock method, and the shares issuable upon conversion of the Notes are not included in the calculation of diluted earnings per share except to the extent that the conversion value of the Notes exceeds their principal amount and if the effect would be dilutive. The computations of basic and diluted income (loss) per share for the three months ended March 31, 2021 and 2020 are as follows:

	Three months ended March 31,
	2021		2020
	(in thousands, except per share amounts)
Net income (loss)	$	2,494	$	(567)
Net income (loss) per common share:
Basic	$	0.05	$	(0.01)
Diluted	$	0.05	$	(0.01)
Basic weighted average shares outstanding		48,624		47,811
Dilutive effect of share-based awards		1,494		—
Dilutive effect of the 2027 Notes		2,932		—
Diluted weighted average shares outstanding		53,050		47,811
Common share equivalents excluded from the diluted weighted average shares outstanding since the Company incurred a net loss and their effect would be antidilutive		N/A		627
Potentially dilutive shares excluded from the diluted calculation as their effect would be antidilutive		878		1,485
Maximum potential shares to be issued for settlement of the 2023, 2025, and 2027 Notes excluded from the diluted calculation as their effect would be antidilutive due to a net loss or the fact that the conversion value of the Notes did not exceed their principal amount		8,811		8,618