Income Per Share

3 Months Ended

Mar. 31, 2017

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 26,715,532 and 29,252,419 shares of Class A common stock outstanding as of March 31, 2017 and 2016, 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 income per share because to do so would have been anti-dilutive for the three months ended March 31, 2017 and 2016.

The following table illustrates the computation of basic and diluted income per share for the three months ended March 31, 2017 and 2016:


	For the three months ended
	March 31, 2017		March 31, 2016
Net income	$	8,258	$	251
Less: income allocated to participating securities		(8)		(14)
Income allocated to common shareholders	$	8,250	$	237
Weighted average shares outstanding for basic income per common share		26,801,773		30,117,317
Dilutive effect of equity awards		844,473		986
Dilutive effect of warrants		33,783		—
Weighted average shares outstanding for diluted income per common share		27,680,029		30,118,303
Basic income per share	$	0.31	$	0.01
Diluted income per share	$	0.30	$	0.01

The Company had 1,719,701 and 2,712,102 outstanding stock options to purchase common stock at weighted average exercise prices of $20.56 and $19.81 per share at March 31, 2017 and 2016, 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, 250,750 warrants were exercised in a non-cash transaction during the first quarter of 2017, representing the remaining outstanding warrants. The warrants had an exercise price of $20.00, which were in-the-money for purposes of the dilution calculations during the three months ended March 31, 2017 and 2016. The Company had 356,407 and 1,000,275 unvested restricted shares and units issued as of March 31, 2017 and 2016, 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.