Earnings Per Share

9 Months Ended

Sep. 30, 2020

The following table summarizes the Company’s computation of basic and diluted earnings per share (EPS) for the three and nine months ended September 30, 2020 and 2019 (amounts in thousands except per share information):


	Three Months Ended September 30, 2020					Nine Months Ended September 30, 2020
	Income (numerator)		Shares (denominator)	Per Share Amount		Income (numerator)		Shares (denominator)	Per Share Amount
Basic EPS:
Net loss	$	(85,904)				$	(111,751)
Less: preferred dividend requirements	(6,034)					(18,102)



Net loss available to common shareholders	$	(91,938)	74,613	$	(1.23)	$	(129,853)	76,456	$	(1.70)
Diluted EPS:
Net loss available to common shareholders	$	(91,938)	74,613			$	(129,853)	76,456
Effect of dilutive securities:
Share options	—		—			—		—


Net loss available to common shareholders	$	(91,938)	74,613	$	(1.23)	$	(129,853)	76,456	$	(1.70)


	Three Months Ended September 30, 2019					Nine Months Ended September 30, 2019
	Income (numerator)		Shares (denominator)	Per Share Amount		Income (numerator)		Shares (denominator)	Per Share Amount
Basic EPS:
Income from continuing operations	$	8,809				$	103,694
Less: preferred dividend requirements	(6,034)					(18,102)

Income from continuing operations available to common shareholders	$	2,775	77,632	$	0.04	$	85,592	76,169	$	1.12
Income from discontinued operations available to common shareholders	$	25,194	77,632	$	0.32	$	62,252	76,169	$	0.82
Net income available to common shareholders	$	27,969	77,632	$	0.36	$	147,844	76,169	$	1.94
Diluted EPS:
Income from continuing operations available to common shareholders	$	2,775	77,632			$	85,592	76,169
Effect of dilutive securities:
Share options	—		32			—		38
Income from continuing operations available to common shareholders	$	2,775	77,664	$	0.04	$	85,592	76,207	$	1.12
Income from discontinued operations available to common shareholders	$	25,194	77,664	$	0.32	$	62,252	76,207	$	0.82
Net income available to common shareholders	$	27,969	77,664	$	0.36	$	147,844	76,207	$	1.94

The additional 2.2 million common shares that would result from the conversion of the Company’s 5.75% Series C cumulative convertible preferred shares for both the three and nine months ended September 30, 2020 and 2019, and

the additional 1.7 million and 1.6 million common shares that would result from the conversion of the Company’s 9.0% Series E cumulative convertible preferred shares for the three and nine months ended September 30, 2020 and 2019, respectively, and the corresponding add-back of the preferred dividends declared on those shares are not included in the calculation of diluted earnings per share because the effect is anti-dilutive.

The dilutive effect of potential common shares from the exercise of share options is included in diluted earnings per share for the periods presented. Options to purchase 117 thousand and 4 thousand common shares at per share prices ranging from $44.62 to $76.63 and $73.84 to $76.63 were outstanding for the three and nine months ended September 30, 2020 and 2019, respectively, but were not included in the computation of diluted earnings per share because they were anti-dilutive.

The dilutive effect of the potential common shares from the performance shares is included in diluted earnings per share upon the satisfaction of certain performance and market conditions. These conditions are evaluated at each reporting period and if the conditions have been satisfied during the reporting period, the number of contingently issuable shares are included in the computation of diluted earnings per share. During the three and nine months ended September 30, 2020, the Company determined the performance and market conditions were not met, therefore, none of the 62 thousand contingently issuable performance shares were included in the computation of diluted earnings per share.