Income (Loss) Per Common Share

Basic income (loss) per common share amounts are calculated using the weighted-average number of common shares outstanding for the period. Diluted income (loss) per common share amounts are calculated using the weighted-average number of common shares outstanding for the period and include the dilutive impact of preferred stock using the if-converted method and exercise of stock options and warrants as well as assumed lapse of restrictions on restricted stock awards and shares currently available for purchase under the Company's Employee Stock Purchase Plan, using the treasury stock method. Performance-based restricted stock units are considered contingently issuable shares for diluted income per common share purposes and the dilutive impact, if any, is not included in the weighted-average shares until the performance conditions are met.

The two-class method is used to calculate basic and diluted income (loss) per common share since the Company's preferred and certain restricted stock were participating securities. The two-class method is an earnings allocation formula that determines income per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Under the two-class method, basic income (loss) per common share is computed by dividing net income (loss) attributable to common shares after allocation of income to participating securities by the weighted-average number of common shares outstanding during the year. Diluted income (loss) per common share is computed using the more dilutive of the two-class method or the if-converted method. In periods of net loss, no effect is given to participating securities since they do not contractually participate in the losses of the Company. The two-class method is the more dilutive method for fiscal 2014, fiscal 2013 and fiscal 2012. As of January 31, 2015, the Company no longer has any outstanding participating securities.

The following table reconciles net income (loss) and the weighted average common shares outstanding used in the computations of basic and diluted income (loss) per common share (in thousands, except for share and per share data):



	Fiscal Year
	2014			2013			2012
Numerator:
Net income	$	48,024		$	32,142		$	20,025
Dividend paid to preferred shareholders	—			—			(62,504		)
Dividend paid to unvested restricted shareholders	—			—			(2,899		)
Net income attributable to participating securities	(20		)	(465		)	—
Net income (loss) attributable to common shareholders	$	48,004		$	31,677		$	(45,378	)
Denominator:
Weighted average common shares outstanding - basic	54,219,801			53,294,805			35,444,200
Dilutive impact of options, restricted stock units, and employee stock purchase plan	354,054			447,055			—
Weighted average common shares outstanding - diluted	54,573,855			53,741,860			35,444,200
Per common share:
Basic income (loss) per common share	$	0.89		$	0.59		$	(1.28	)
Diluted income (loss) per common share	$	0.88		$	0.59		$	(1.28	)

For fiscal 2014 and fiscal 2013, $20.0 thousand and $0.5 million respectively, of net income was attributable to participating securities, as the two-class method was more dilutive, and the remainder was attributable to common shareholders. For fiscal 2012, as the Company was in a net loss position after recognition of the payment of dividends, the net losses were solely attributable to common shareholders.

The effects of the assumed exercise of stock options outstanding as of January 31, 2015 for 593,773 shares of common stock were excluded from the fiscal 2014 calculation of diluted net income per share as their impact would have been anti-dilutive.

The effects of non-vested restricted stock units outstanding as of January 31, 2015 for 3,930 shares of common stock were excluded from the fiscal 2014 calculation of diluted net income per share as their impact would have been anti-dilutive.

The effects of the assumed exercise of stock options outstanding as of February 1, 2014 for 388,197 shares of common stock were excluded from the fiscal 2013 calculation of diluted net income per share as their impact would have been anti-dilutive.

The effects of the assumed exercise of the combined stock options and warrants and vesting of restricted share awards outstanding as of February 2, 2013 of 2,573,490, and the impact of shares to be issued under the Company's Employee Stock Purchase Plan, which is minor, were excluded from the fiscal 2012 calculation of diluted net loss as the effect would be anti-dilutive due to a net loss to common shareholders.

The aforementioned excluded shares do not reflect the impact of any incremental repurchases under the treasury stock method.