EARNINGS (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2020

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE

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, 2020, 2019 and 2018 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 loss per share as their effects were anti-dilutive. For the years ended December 31, 2019 and 2018 shares of the Company’s outstanding stock options were not included in the computation of diluted loss per share as their effects were anti-dilutive.

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)	2020		2019		2018
Numerator
Net income (loss)	$	6.2	$	(307.4)	$	(5.2)
Less Series A preferred dividends		(4.9)		(5.0)		(4.9)
Net income (loss) attributable to common stockholders		1.3		(312.4)		(10.1)
Allocation of earnings to non-vested participating restricted stock units		—		—		—
Numerator for basic EPS - income (loss) available to common stockholders - two class method	$	1.3	$	(312.4)	$	(10.1)
Effect of dilutive securities:
Add back Series A preferred dividends	$	—	$	—	$	—
Add back allocation earnings to participating securities		—		—		—
Reallocation of earnings to participating securities considering potentially dilutive securities		—		—		—
Numerator for diluted EPS - income (loss) available to common shareholders - two class method	$	1.3	$	(312.4)	$	(10.1)
Denominator
Denominator for basic EPS - weighted-average shares		64,775,275		64,303,438		61,654,820
Effect of dilutive securities:
Stock options and performance share units		895,971		—		—
Convertible preferred stock		—		—		—
Denominator for diluted EPS - weighted-average shares		65,671,246		64,303,438		61,654,820
Basic earnings (loss) per share	$	0.02	$	(4.86)	$	(0.16)
Diluted earnings (loss) per share	$	0.02	$	(4.86)	$	(0.16)