Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2020

The following table details the computation of basic and diluted earnings (loss) per share:


	Three months ended June 30,						Six months ended June 30,
	2020		2019		2020		2019
Numerator:
Net income (loss)	$	36,998	$	(1,712)	$	53,096	$	(1,129)
Dividends on convertible preferred stock outstanding	(76)		(1,098)		(1,171)		(2,185)
Dividends paid pursuant to the Conversion Agreement	(790)		—		(790)		—
Consideration paid in excess of preferred cost basis pursuant to the Conversion Agreement	(48,951)		—		(48,951)		—
Income allocated to participating securities	—		—		(264)		—
Net (loss) income available to common stockholders	$	(12,819)	$	(2,810)	$	1,920	$	(3,314)

Continuing operations	$	(12,518)	$	(4,507)	$	2,423	$	(4,280)
Discontinued operations	(301)		1,697		(503)		966
Net (loss) income available to common stockholders	$	(12,819)	$	(2,810)	$	1,920	$	(3,314)

Denominator:
Denominator for basic earnings per share -- weighted-average shares	13,077,596		12,973,496		13,032,931		12,937,054
Effect of dilutive securities:
Common stock options	—		—		10,347		—
Restricted stock	—		—		16,421		—
Denominator for diluted earnings per share -- adjusted weighted-average shares assumed conversion	13,077,596		12,973,496		13,059,699		12,937,054

Basic (loss) earnings per share:
Continuing operations	$	(0.96)	$	(0.35)	$	0.19	$	(0.33)
Discontinued operations	(0.02)		0.13		(0.04)		0.07
Basic (loss) earnings per share	$	(0.98)	$	(0.22)	$	0.15	$	(0.26)
Diluted (loss) earnings per share:
Continuing operations	$	(0.96)	$	(0.35)	$	0.19	$	(0.33)
Discontinued operations	(0.02)		0.13		(0.04)		0.07
Diluted (loss) earnings per share	$	(0.98)	$	(0.22)	$	0.15	$	(0.26)

Income allocated to participating securities is calculated by allocating a portion of net income attributable to Providence, less dividends on convertible stock, to the convertible preferred stockholders on a pro-rata, as converted basis; however, the convertible preferred stockholders are not allocated losses.

In accordance with ASC 260, Earnings Per Share, and as related to the Conversion Agreement discussed in Note 10, Stock-Based Compensation and Similar Arrangements, the numerator was adjusted by the excess of the fair value of consideration paid over the carrying amount of the shares surrendered, net of issuance costs.

The following weighted-average shares were not included in the computation of diluted earnings per share as the effect of their inclusion would have been anti-dilutive:


	Three months ended June 30,			Six months ended June 30,
	2020	2019	2020	2019
Stock options to purchase common stock	597,842	560,849	604,394	587,282
Convertible preferred stock	633,454	801,391	715,657	801,498