EARNINGS (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2023

NOTE 17 – EARNINGS (LOSS) PER SHARE

ASC Topic 260, Earnings Per Share, provides that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. The Company’s outstanding non-vested restricted stock units are participating securities unless there is a net loss attributable to common stockholders. Accordingly, earnings per common share are computed using the two-class method.

Basic earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the Company’s earnings.

For the years ended December 31, 2023, 2022 and 2021 shares of the Company’s 7.625% Series A Convertible Cumulative Preferred Stock (Series A Preferred Stock) were not included in the computation of diluted earnings per share as their effects were anti-dilutive. For the year ended December 31, 2023, all outstanding equity awards discussed in Note 13 were not included in the computation of diluted earnings per share as their effects were anti-dilutive. For the years ended December 31, 2022 and 2021, approximately 1.0 million and 1.3 million shares of common stock issuable upon exercise of outstanding stock options, respectively, were not included in the computation of diluted earnings per share as their exercise price was greater than the average market price of the common stock.

The following table sets forth the computation of basic and diluted earnings per share under the two-class method:


	Year Ended
	December 31,
(in millions, except per share data)	2023			2022			2021

Numerator:
Net income (loss)	$	(17.7	)	$	50.2		$	56.0
Less Series A Preferred Stock dividends		(5.0	)		(5.0	)		(5.0	)
Less Series B Preferred Stock dividends		(4.3	)		(0.7	)		—
Net income (loss) attributable to common stockholders		(27.0	)		44.5			51.0
Allocation of earnings to non-vested participating RSUs		—			(0.1	)		(0.4	)
Numerator for basic EPS - income (loss) available to common stockholders - two class method	$	(27.0	)	$	44.4		$	50.6

Effect of dilutive securities:
Add back Series A Preferred Stock dividends	$	—		$	—		$	—
Add back allocation earnings to participating securities		—			0.1			0.4
Reallocation of earnings to participating securities considering potentially dilutive securities		—			(0.1	)		(0.4	)
Numerator for diluted EPS - income (loss) available to common stockholders - two class method	$	(27.0	)	$	44.4		$	50.6

Denominator:
Denominator for basic EPS - weighted-average shares		45,822,936			60,459,451			63,744,456

Effect of dilutive securities:
Non-participating outstanding share-based payment awards		—			2,824,051			1,664,802
Series A Preferred Stock		—			—			—
Denominator for diluted EPS - weighted-average shares		45,822,936			63,283,502			65,409,258

Basic earnings (loss) per share	$	(0.59	)	$	0.73		$	0.79
Diluted earnings (loss) per share	$	(0.59	)	$	0.70		$	0.77