Earnings Per Share

We include all common shares granted under our incentive compensation plan which remain unvested (“restricted common shares”) and contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (“participating securities”), in the number of shares outstanding in our basic earnings per share calculations using the two-class method. All of our restricted common shares are currently participating securities.

Under the two-class method, earnings per common share is computed by dividing the sum of distributed earnings allocated to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, distributed and undistributed earnings are allocated to both common shares and restricted common shares based on the total weighted average shares outstanding during the period. Because the holders of the participating restricted common shares were not contractually required to share in the Company’s losses, in applying the two-class method to compute basic and diluted net loss per common share, no allocation to restricted common shares was made for the three and nine months ended September 30, 2013.



	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2014		2013		2014
Weighted-average shares:
Common shares outstanding	78,544,380		80,389,996		71,462,264		80,389,131
Restricted common shares	669,489		600,581		562,612		581,932
Total weighted-average shares	79,213,869		80,990,577		72,024,876		80,971,063

Percentage of weighted-average shares:
Common shares outstanding	99.15	%	99.26	%	99.22	%	99.28	%
Restricted common shares	0.85	%	0.74	%	0.78	%	0.72	%
Total	100.00	%	100.00	%	100.00	%	100.00	%

The calculations of both basic and diluted earnings per share are as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2014			2013			2014
Earnings per share – Basic:
Net income (loss)	$	(74,558	)	$	19,151		$	(18,640	)	$	28,064
Less: Distributed and undistributed earnings allocated to restricted common shares (a)	—			(142		)	—			(202		)
Earnings (loss) available to common shareholders – Basic	$	(74,558	)	$	19,009		$	(18,640	)	$	27,862

Weighted-average common shares outstanding – Basic	78,544,380			80,389,996			71,462,264			80,389,131

Earnings (loss) per common share – Basic	$	(0.95	)	$	0.24		$	(0.26	)	$	0.35

Earnings per share – Diluted:
Net income	$	(74,558	)	$	19,151		$	(18,640	)	$	28,064
Less: Distributed and undistributed earnings allocated to restricted common shares(a)	—			(142		)	—			(202		)
Earnings (loss) available to common shareholders – Diluted	$	(74,558	)	$	19,009		$	(18,640	)	$	27,862

Weighted-average common shares outstanding – Basic	78,544,380			80,389,996			71,462,264			80,389,131
Effect of dilutive shares^(b)	—			—			—			—
Weighted-average common shares outstanding – Diluted	78,544,380			80,389,996			71,462,264			80,389,131

Earnings (loss) per common share – Diluted	$	(0.95	)	$	0.24		$	(0.26	)	$	0.35

(a)

For the three months ended September 30, 2013 and 2014, distributed and undistributed earnings to restricted shares is 0.85% and 0.74% of net income. For the nine months ended September 30, 2013 and 2014, distributed and undistributed earnings to restricted shares is 0.78% and 0.72% of net income. The amount of restricted share forfeitures for all periods present is immaterial to the allocation of distributed and undistributed earnings.


(b)	For the three and nine months ended September 30, 2013 and 2014, we had no dilutive shares.