Earnings Per Share

3 Months Ended

Mar. 31, 2021

The Company computes earnings (loss) per share ("EPS") using the two-class method. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. The outstanding shares of Series B Preferred Stock are participating securities because holders have non-forfeitable dividend rights and participate in undistributed earnings within common stock.

Basic EPS was computed by dividing net income allocable to common stockholders, after deducting undistributed earnings allocated to participating securities, by the weighted-average number of common stock outstanding.

For the calculation of diluted EPS, net income for basic EPS is adjusted by the effect of dilutive securities. Diluted EPS attributable to common stockholders is computed by dividing the resulting net income for basic EPS adjusted by the effect of dilutive preferred stock by the weighted-average number of shares adjusted for the effect of dilutive shares. The Company also applied the if-converted method to calculate dilution on the Series B Preferred Stock which resulted in 31.0 million additional shares. This calculation was anti-dilutive.

The following table sets forth the computation of basic and diluted EPS of common stock for the three months ended March 31, 2021 and 2020:


(in thousands, except share and per share data)		Three Months Ended March 31, 2021		Three Months Ended March 31, 2020
Basic earnings (loss) per share:
Numerator	Net income (loss) attributable to common stockholders	$	2,418	$	(3,717)
	Less: Net income allocable to participating preferred stock	914		—
	Net income (loss) allocable to common stockholders	1,504		(3,717)

Denominator	Weighted average number of common stock outstanding	51,031,457		50,525,781

	Basic earnings (loss) per share	$	0.03	$	(0.07)

Diluted earnings (loss) per share:


Numerator	Net income (loss) allocable to common stockholder	$	1,504	$	(3,717)

Denominator	Weighted average number of shares
	Common stock outstanding	51,031,457		50,525,781
	Dilutive effect of restricted stock and restricted stock units	1,264,831		—
	Weighted number of shares used for diluted earnings (loss) per share	52,296,288		50,525,781

	Diluted earnings (loss) per share	$	0.03	$	(0.07)

The effect of stock-based awards including options and restricted stock outstanding for the three months ended March 31, 2020 were excluded in the computation of diluted earnings per share because their inclusion would have been anti-dilutive.

The Company had a net loss for the three months ended March 31, 2020. Therefore, the effect of stock-based awards including options, restricted stock, restricted stock units and warrants outstanding at March 31, 2020 were excluded in the computation of diluted loss per share because their inclusion would have been anti-dilutive.

The following represents the weighted average number of shares that could potentially dilute basic earnings per share in the future:


	Three Months Ended March 31, 2021	Three Months Ended March 31, 2020

Stock-based compensation awards(1):
Stock options	799,570	862,945
Restricted stock awards and restricted stock units	22,090	592,833

Warrants:
Private placement warrants	—	6,160,000
Public warrants	—	9,823,072

(1) SARs and Phantom stocks are payable in cash so will therefore have no impact on number of shares.