Earnings per share

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share

2. Earnings per share

Basic net income (loss) per common share is based upon the average number of shares of common stock outstanding during the period. Stock options and restricted stock of 9,500 shares were excluded from the computation of diluted net income per share because their inclusion would have been anti-dilutive for the three months ended March 31, 2015.

For the three months ended March 31, 2015 and 2014, 4,832 shares issuable upon conversion of our 7.75% Convertible Notes were excluded from the computation of diluted net income (loss) per share because their inclusion would have been anti-dilutive.

For the three months ended March 31, 2014, shares issuable upon conversion of our 4.5% Convertible Senior Notes were excluded from the computation of diluted net loss per share because their inclusion would have been anti-dilutive.

Concurrent with the issuance of the 4.5% Convertible Notes, we entered into convertible note hedge and warrant transactions. Because the Company would have exercised a call option if the market price of our stock exceeded the warrant exercise price of $12.74 per share, the effect of the convertible note hedge, which expired pro rata as the 2014 Notes were repurchased, was excluded from the calculation of diluted earnings per share for the three months ended March 31, 2014, as the impact was always considered anti-dilutive. The warrants expire in 2015, are considered to have no value, and were excluded from the calculation of diluted earnings per share for the three months ended March 31, 2015 and 2014.  

The following table summarizes the computations of basic and diluted earnings per share:

	Three Months Ended
	March 31,
	2015		2014
Numerator:
Net income (loss), basic and diluted	$	295	$	(477	)
Denominator:
Total basic weighted-average common shares outstanding		60,342		59,079
Effect of dilutive stock options and restricted stock based on treasury stock method		1,684		—
Weighted average diluted shares		62,026		59,079
Basic earnings per common share:
Net income (loss) per share-basic	$	0.00	$	(0.01	)
Diluted earnings per common share:
Net income (loss) per share-diluted	$	0.00	$	(0.01	)

Our two classes of common stock (Class A and B) share equally in dividends declared or accumulated and have equal participation rights in undistributed earnings. In addition, our unvested restricted stock does not contain non-forfeitable rights to dividends and dividend equivalents. As such, unvested shares of restricted stock are not participating securities and our basic and diluted earnings per share are not impacted by the two-class method of computing earnings per share.