Note 12 Income Per Share

The Company calculates income per share under the two-class method, as certain non-vested share awards contain non-forfeitable rights to dividends. As such, these awards are considered securities that participate in the earnings of the Company. Non-vested shares are discussed further in note 9.

The Company had 28,810,883 and 35,053,339 shares outstanding (inclusive of Class A and B) as of June 30, 2016 and 2015, respectively, exclusive of issued non-vested restricted shares. Certain stock options and non-vested restricted shares are potentially dilutive securities, but are not included in the calculation of diluted earnings per share because to do so would have been anti-dilutive for the three and six months ended June 30, 2016 and 2015.

The following table illustrates the computation of basic and diluted income per share for the three and six months ended June 30, 2016 and 2015:


	For the three months ended				For the six months ended
	June 30, 2016		June 30, 2015		June 30, 2016		June 30, 2015
Net income (loss)	$	4,504	$	(1,341)	$	4,755	$	(95)
Less: earnings allocated to participating securities		(12)		—		(25)		—
Earnings (loss) allocated to common shareholders	$	4,492	$	(1,341)	$	4,730	$	(95)
Weighted average shares outstanding for basic earnings per common share		29,215,822		36,164,617		29,666,570		37,091,412
Dilutive effect of equity awards		49,461		—		37,643		—
Dilutive effect of warrants		13,476		—		3,166		—
Weighted average shares outstanding for diluted earnings per common share		29,278,759		36,164,617		29,707,379		37,091,412
Basic earnings (loss) per share	$	0.15	$	(0.04)	$	0.16	$	0.00
Diluted earnings (loss) per share	$	0.15	$	(0.04)	$	0.16	$	0.00

The Company had 2,703,752 and 3,058,821 outstanding stock options to purchase common stock at weighted average exercise prices of $19.82 and $19.86 per share at June 30, 2016 and 2015, respectively, which have time-vesting criteria, and as such, any dilution is derived only for the time frame in which the vesting criteria had been met and where the inclusion of those stock options is dilutive. Additionally, the Company had outstanding warrants to purchase shares of the Company’s common stock totaling 725,750 and 830,750 as of June 30, 2016 and 2015, respectively. The warrants have an exercise price of $20.00, which were in-the-money for purposes of dilution calculations during the three and six months ended June 30, 2016, and out-of-the-money during the three and six months ended June 30, 2015. The Company had 918,890 and 1,043,228 unvested restricted shares and units issued as of June 30, 2016 and 2015, respectively, which have performance, market and/or time-vesting criteria, and as such, any dilution is derived only for the time frame in which the vesting criteria had been met and where the inclusion of those restricted shares and units is dilutive.

In accordance with ASC Topic 260, Earnings Per Share, the dilutive effect of earnings allocated to participating securities, and any potential common shares related to equity awards and warrants are excluded from the calculation of diluted earnings (loss) per share when a loss from continuing operations exists. For the three and six months ended June 30, 2015, the dilutive effect of equity awards totaling 630 shares and 276 shares, respectively, and earnings allocated to participating securities are excluded from diluted loss per share.