Earnings per Share

3 Months Ended

Mar. 31, 2016

Earnings per Share

Earnings per Share

12.  Earnings per Share

Basic income per common share is determined by dividing income attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration of common stock equivalents. Diluted income per share is computed by dividing the income attributable to common stockholders by the weighted-average number of common share equivalents outstanding for the period. The treasury stock method is used to determine the dilutive effect of the Company’s stock option grants, SARs, and potential ESPP awards, and the if-converted method is used to determine the dilutive effect of the Company’s Notes.

The following common stock equivalents were excluded in the calculation of diluted income per share because their effect would be anti-dilutive as applied to the income from continuing operations applicable to common stockholders for the three months ended March 31, 2016 and March 31, 2015:

	Three Months ended March 31,
	2016	2015
	(unaudited)
Shares underlying Convertible Senior Secured Notes	—	6,071,894
Warrants to purchase common stock	—	21,800

The following table sets forth the computation of basic and diluted net income per share for the three months ended March 31, 2016 and March 31, 2015, in thousands, except share and per share amounts, restated:

	Three Months ended March 31,
	2016			2015
	(unaudited)
Numerator, in thousands:
Net income used for calculation of basic EPS	$	4,825		$	738
Interest expense on convertible debt	179			—
Changes in fair value of derivative liabilities	(101		)	—
Loss on extinguishment of debt	382
Loss on extinguishment of outstanding debt, as if converted	(1,229		)	—
Total adjustments	(769		)	—
Net income used for calculation of diluted EPS	$	4,056		$	738
Denominator:
Weighted average shares outstanding, basic	49,240,099			44,563,299
Effect of dilutive potential common shares:
Shares underlying Convertible Senior Secured Notes	1,383,472			—
Shares issuable to settle interest make-whole derivatives	71,537			—
Stock options, stock appreciation rights, and non-vested stock options	456,964			337,999
Total potential dilutive common shares	1,911,973			337,999
Weighted average shares outstanding, diluted	51,152,072			44,901,298
Net income per share, basic	$	0.10		$	0.02
Net income per share, diluted	$	0.08		$	0.02