Earnings per share

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Earnings per share

5. Earnings per share

The Company computes (loss) earnings per share by applying the guidance stated in ASC 260, Earnings per Share. The treasury stock method has been used to compute (loss) earnings per share. The Company has issued warrants (“Private Placement Warrants”) that represent the right to purchase shares of the Company’s common stock, a stock appreciation right (“SAR”) and restricted stock, all of which have been evaluated for their potentially dilutive effect under the treasury stock method. Refer to Note 11, “Stockholders’ equity” for a further description of the Private Placement Warrants and Note 10, “2012 Incentive compensation plan” for a further description of the SAR and restricted stock.

Computation of dilutive common shares

The Company utilizes the treasury stock method described in ASC 260-10-55 to determine the number of treasury shares assumed to be purchased from the hypothetical proceeds of exercise, with any residual shares representing the incremental common shares to be issued and included in diluted (loss) earnings per share. As of March 31, 2015, the Company’s Private Placement Warrants, SAR and restricted stock were evaluated for their potentially dilutive effect under the treasury stock method. Due to the loss reported in the unaudited condensed consolidated statements of operations, any potentially issuable shares of Company common stock associated with the Private Placement Warrants, SAR and restricted stock were not included in the dilutive EPS calculation for the three months ended March 31, 2015. These potential shares were excluded from the diluted EPS calculation because they would have had an anti-dilutive effect under the treasury stock method.

As of March 31, 2014, the Company’s Private Placement Warrants, SAR and restricted stock were evaluated for their potentially dilutive effect under the treasury stock method. See the table below for detail as to the dilutive effect of using the treasury stock method.

The computations of basic and diluted (loss) earnings per share for the three months ended March 31, 2015 and 2014, were as follows:

	Three months ended March 31,
	2015			2014
Numerator:
Net (loss) income	$	(1,456	)	$	2,374
Change in the value of Private Placement Warrants		—			(233	)
	$	(1,456	)	$	2,141
Denominator:
Weighted average common shares outstanding-basic		10,797,056			10,542,460
Incremental shares from assumed exercise of Private Placement Warrants, SAR and restricted stock		—			512,134
Weighted average common shares outstanding-diluted		10,797,056			11,054,594
(Loss) earnings per share of common stock – basic and diluted
(Loss) earnings per share of common stock – basic	$	(0.13	)	$	0.23
(Loss) earnings per share of common stock – diluted	$	(0.13	)	$	0.19