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Earnings Per Share
 12 Months Ended
Dec. 31, 2016
Earnings Per Share [Abstract]  
Earnings Per Share

8.

EARNINGS PER SHARE

Basic earnings per share (“EPS”) is based on the weighted average number of shares of common stock outstanding for the period. Diluted EPS is computed in a similar manner to basic EPS after assuming the issuance of shares of common stock for all potentially dilutive shares of restricted stock whether or not they are vested.

In accordance with ASC Topic 260 “Earnings Per Share”, the two-class method determines earnings for each class of common stock and participating securities according to an earnings allocation formula that adjusts the income available to common stockholders for dividends or dividend equivalents and participation rights in undistributed earnings.  Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method.  The outstanding restricted shares of stock that were issued on July 8, 2015, are considered participating securities.

Under the 2014 Reorganization, all the outstanding common units, Series B Preferred Units and incentive units of Holdings were exchanged for, or converted into, an aggregate of 45,708,573 shares of our common stock and 8,121,101 shares of our restricted stock as of January 1, 2014.

The following is a reconciliation of net income and the shares of common stock used in the computation of basic and diluted net earnings per share (dollars in thousands, except share amounts):

 

 

 

 

 

Year Ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

43,840

 

 

$

20,945

 

 

$

5,663

 

Less:  income allocable to participating securities

 

 

(333

)

 

 

(270

)

 

 

—

 

Income allocable to common shares

 

$

43,507

 

 

$

20,675

 

 

$

5,663

 

Add back:  undistributed earnings allocable to participating securities

 

 

333

 

 

 

270

 

 

 

—

 

Less:  undistributed earnings reallocated to participating securities

 

 

(333

)

 

 

(264

)

 

 

—

 

Numerator for diluted earnings per share

 

$

43,507

 

 

$

20,681

 

 

$

5,663

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

50,315,455

 

 

 

50,315,455

 

 

 

49,002,809

 

Weighted average common shares repurchased

 

 

(286,699

)

 

 

—

 

 

 

—

 

Adjustment for vested restricted stock

 

 

7,521,448

 

 

 

6,179,715

 

 

 

781,345

 

Shares for calculating basic earnings per share

 

 

57,550,204

 

 

 

56,495,170

 

 

 

49,784,154

 

Dilutive effect of unvested restricted stock

 

 

1,417,895

 

 

 

1,424,530

 

 

 

2,073,155

 

Shares for calculating diluted earnings per share

 

 

58,968,099

 

 

 

57,919,700

 

 

 

51,857,309

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.76

 

 

$

0.37

 

 

$

0.11

 

Diluted

 

$

0.74

 

 

$

0.36

 

 

$

0.11