Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2020

NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is presented in conformity with the two-class method required for participating securities. Participating securities include restricted stock units ("RSUs").

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.

For the 2036 Convertible Senior Notes, the Company’s current intent is to settle conversions using cash for the principal amount of convertible senior notes converted, with the remaining value satisfied at the Company’s option in cash, stock or a combination of cash and stock. Therefore, the dilutive effect of the convertible senior notes is limited to the conversion premium.

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



	Three Months Ended March 31, 2020	Three Months Ended March 31, 2019
Stock appreciation rights	—	1,012,097
2019 Convertible Senior Notes	—	2,624,215
2036 Convertible Senior Notes	—	3,737,641
Total	—	7,373,953

The following table presents the calculation of diluted net income (loss) per share available to common stockholders:



	Three Months Ended March 31, 2020			Three Months Ended March 31, 2019
Net income (loss) from continuing operations available to the Company’s common stockholders - Basic	$	75,300		$	(41,387	)
Plus (less): effect of participating securities	1,553			—
Net income (loss) available to common stockholders	76,853			(41,387		)
Less: effect of participating securities	(1,553		)	—
Net income (loss) from continuing operations available to the Company's common stockholders - Diluted	$	75,300		$	(41,387	)

Net income (loss) from discontinued operations available to the Company’s common stockholders - Basic	$	—		$	(2,017	)
Plus (less): effect of participating securities	—			—
Net income (loss) available to common stockholders	—			(2,017		)
Less: effect of participating securities	—			—
Net income (loss) from discontinued operations available to the Company's common stockholders - Diluted	$	—		$	(2,017	)

Net income (loss) available to the Company's common stockholders - Basic	$	75,300		$	(43,404	)
Plus (less): effect of participating securities	1,553			—
Net income (loss) available to common stockholders	76,853			(43,404		)
Less: effect of participating securities	(1,553		)	—
Net income (loss) available to the Company's common stockholders - Diluted	$	75,300		$	(43,404	)

Shares:
Weighted-average shares used to compute basic net income (loss) per share	38,979,057			37,353,352
Adjustment to reflect conversion of convertible notes	4,190,024			—
Adjustment to reflect stock appreciation right conversions	523,074			—
Weighted-average shares used to compute diluted net income (loss) per share	43,692,155			37,353,352

Net income (loss) per share available to common stockholders - Diluted
Continuing operations	$	1.72		$	(1.11	)
Discontinued operations	$	—		$	(0.05	)
Diluted net income (loss)	$	1.72		$	(1.16	)