Income (loss) per common share

Basic net income (loss) per share (“EPS”) is calculated by dividing net income (loss) attributable to common stockholders by the weighted average shares outstanding during the period. Diluted EPS is calculated by adjusting weighted average shares outstanding for the dilutive effect of common share equivalents outstanding for the period, determined using the treasury-stock method. For purposes of the diluted EPS calculation, stock options and nonvested stock awards are considered to be common stock equivalents. Convertible Class C Preferred shares are considered to be participating securities. During periods of net income, participating securities are allocated a proportional share of net income determined by dividing total weighted average participating securities by the sum of total weighted average common shares and participating securities (“the two-class method”). During periods of net loss, no effect is given to participating securities, since they do not share in the losses of the Company.

The basic and diluted EPS calculations for the three months and six months ended June 30, 2013 and 2012 are presented below:



Basic EPS	Three months ended June 30,
	2013			2012
Income (loss) from continuing operations	$	1,884		$	(2,109	)
Redeemable Class B Senior Preferred stock deemed dividend	(744		)	(1,122		)
Income from continuing operations allocated to participating securities	(279		)	—
Income (loss) available to common stockholders, from continuing operations	861			(3,231		)
Income (loss) from discontinued operations, net of tax	94			(128		)
Income from discontinued operations allocated to participating securities	(23		)	—
Income (loss) available to common stockholders, from discontinued operations	71			(128		)
Income (loss) available to common stockholders	$	932		$	(3,359	)

Weighted average outstanding shares of common stock	13,750,400			13,178,143
Basic EPS
Income (loss) from continuing operations	$	0.06		$	(0.24	)
Income (loss) from discontinued operations	0.01			(0.01		)
Basic EPS	$	0.07		$	(0.25	)



Diluted EPS	Three months ended June 30,
	2013			2012
Income (loss) from continuing operations	$	1,884		$	(2,109	)
Redeemable Class B Senior Preferred stock deemed dividend	(744		)	(1,122		)
Income (loss) available to common stockholders, from continuing operations	1,140			(3,231		)
Income (loss) from discontinued operations, net of tax	94			(128		)
Income (loss) available to common stockholders	$	1,234		$	(3,359	)

Weighted average outstanding shares of common stock	13,750,400			13,178,143
Redeemable Class C Convertible Preferred stock	4,454,889			—
Nonvested shares	565,241			—
Options to purchase common stock	117,147			—
Weighted average shares and dilutive shares	18,887,677			13,178,143
Diluted EPS
Income (loss) from continuing operations	$	0.06		$	(0.24	)
Income (loss) from discontinued operations	0.01			(0.01		)
Diluted EPS	$	0.07		$	(0.25	)



Basic and diluted EPS	Six months ended June 30,
	2013			2012
Loss from continuing operations	$	(2,330	)	$	(10,562	)
Redeemable Class B Senior Preferred stock deemed dividend	(1,473		)	(2,222		)
Convertible Class C Preferred stock dividends	—			(5,000		)
Loss available to common stockholders, from continuing operations	(3,803		)	(17,784		)
Income (loss) from discontinued operations, net of tax	251			(241		)
Loss available to common stockholders	$	(3,552	)	$	(18,025	)

Weighted average outstanding shares of common stock	13,637,462			12,937,474
Basic and diluted EPS
Loss from continuing operations	$	(0.28	)	$	(1.37	)
Income (loss) from discontinued operations	0.02			(0.02		)
Basic and diluted EPS	$	(0.26	)	$	(1.39	)

The following table provides the securities that could potentially dilute basic earnings per share in the future, but were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive:



	Three months ended June 30,		Six months ended June 30,
	2013	2012	2013	2012
Stock option awards	—	1,006,936	575,463	1,006,936
Nonvested stock awards	—	454,510	226,607	454,510
Convertible Class C Preferred Stock (as converted basis)	—	4,454,889	4,454,889	4,454,889