Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2013

Earnings (Loss) Per Share

Earnings (Loss) Per Share

10. Earnings (Loss) Per Share

The Company’s Series A Preferred Stock issued in connection with the Eagle Property Acquisition has the nonforfeitable right to participate on an as converted basis at the conversion rate then in effect in any common stock dividends declared and as such, is considered a participating security. The Company’s nonvested stock awards, which are granted as part of the 2012 LTIP, contain nonforfeitable rights to dividends and as such, are considered to be participating securities and, together with the Series A Preferred Stock, are included in the computation of basic and diluted earnings (loss) per share, pursuant to the two-class method. In the calculation of basic earnings (loss) per share attributable to common shareholders, participating securities are allocated earnings based on actual dividend distributions received plus a proportionate share of undistributed net income attributable to common shareholders, if any, after recognizing distributed earnings. The Company’s participating securities do not participate in undistributed net losses because they are not contractually obligated to do so.

The computation of diluted earnings per share attributable to common shareholders reflects the potential dilution that could occur if securities or other contracts to issue common shares that are dilutive were exercised or converted into common shares (or resulted in the issuance of common shares) and would then share in the earnings of the Company. During the periods in which the Company records a loss from continuing operations attributable to common shareholders, securities would not be dilutive to net loss per share and conversion into common shares is assumed to not occur. Diluted net income per share attributable to common shareholders is calculated under both the two-class method and the treasury stock method; the more dilutive of the two calculations is presented below.

The following table (in thousands, except share and per share amounts) is a calculation of the basic and diluted net income (loss) for the three and six months ended June 30, 2013 and 2012.

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2013		2012 (1)		2013		2012 (1)
Numerator
Net income (loss)	3,338		(112,377	)	(4,611	)	(129,884	)
Less:
Preferred stock dividend	(2,709	)	—		(6,826	)	—
Undistributed earnings to participating securities	(170	)	—		—		—
Net income (loss) attributable to common shareholders - basic and diluted	459		(112,377	)	(11,437	)	(129,884	)
Denominator
Weighted average basic and diluted common shares outstanding (2)	68,441		60,887		65,699		54,261
Basic and diluted earnings (loss) per common share	$0.01		$(1.85	)	$(0.17	)	$(2.39	)

(1) For the 2012 comparable period, the Company was not a public company until April 25, 2012.

(2) At June 30, 2013, there were no other dilutive securities outstanding to consider for the period presented as the nonvested restricted stock grants and Series A Preferred Stock had already been considered as part of the two-class method.

The aggregate number of common shares outstanding at June 30, 2013 was 68,545,925, of which 2,725,142 were unvested restricted shares. The aggregate number of shares of Series A Preferred Stock outstanding at June 30, 2013 was 325,000, representing on an as-converted basis approximately 25.5 million common shares based upon a conversion price of $13.50 per share which have been excluded from the weighted average shares outstanding for EPS purposes due to their anti-dilutive effect.