Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2015

NET INCOME (LOSS) PER SHARE

Basic net income per common share is presented in conformity with the two-class method required for participating securities. Participating securities include, or have included, Series A Preferred Stock, Series B Preferred Stock and RSU's.

Under the two-class method, net income is reduced for distributed and undistributed dividends earned in the current period. The remaining earnings are then allocated to Common Stock and the participating securities. The Company calculates the effects of participating securities on diluted earnings per share (EPS) using both the “if-converted or treasury stock” and "two-class" methods and discloses the method which results in a more dilutive effect. The effects of Common Stock options, warrants, stock appreciation rights and convertible notes on diluted EPS are calculated using the treasury stock method unless the effects are anti-dilutive to EPS.

The following potentially dilutive weighted average securities were excluded from the calculation of diluted net income per share attributable to common stockholders during the periods presented as the effect was anti-dilutive:



	Year Ended December 31,
	2015	2014	2013
Options to purchase common stock	87,026	87,026	87,026
Stock appreciation rights	2,072,130	1,400,824	1,030,926
Warrants to purchase common stock	—	17,916	—
Convertible notes	10,838,218	6,295,075	—
Total	12,997,374	7,800,841	1,117,952

The following table presents the calculation of diluted net income per share for the years ended December 31, 2015, 2014 and 2013 (in thousands, except share and per share data):



	2015			2014			2013
Net income (loss) attributable to the Company's common stockholders - Basic	$	(151,392	)	$	81,620		$	165,254
Plus: distributed dividends to Preferred Stockholders	—			40			2,055
Plus (less): effect of participating securities	—			(418		)	(2,051		)
Net income (loss) attributable to the Company's common stockholders - Diluted	$	(151,392	)	$	81,242		$	165,258
Shares:
Weighted-average shares outstanding - Basic	43,958,803			40,740,411			33,045,164
Adjustment to reflect stock appreciation right conversions	—			9,502			7,065
Adjustment to reflect warrants to purchase common stock	—			—			650
Weighted-average shares outstanding - Diluted	43,958,803			40,749,913			33,052,879

Net income (loss) per share attributable to common stockholders - Diluted	$	(3.44	)	$	1.99		$	5.00