Note 11—Earnings Per Share

Basic earnings per share (“EPS”) is calculated by dividing net income available to common shareholders by the weighted average shares outstanding during each period. Dilutive net EPS is calculated by dividing adjusted net income available to common shareholders by the weighted average number of diluted common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for the diluted EPS calculation consists of (i) unvested restricted stock awards, outstanding stock options and warrants using the treasury stock method, and (ii) the Company’s Class C common stock using the “if-converted” method.

The Company’s shares of Series B Preferred Stock were converted into shares of Class A Common Stock on May 25, 2017 as a result of shareholder vote. As such, the Company no longer has any participating shares and therefore does not utilize the two-class method. Shares of the Company’s unvested restricted stock are eligible to receive dividends; however, dividend rights will be forfeited if the award does not vest. Accordingly, these shares are not considered participating securities. Shares of the Company’s Class C Common Stock and warrants do not share in the earnings or losses and are therefore not participating securities.

The following table reflects the allocation of net income to common shareholders and EPS computations for the periods indicated based on a weighted average number of common stock outstanding for the period:



(in thousands, except per share data)	For the Three Months Ended June 30, 2017		For the Six Months Ended June 30, 2017
Net income attributable to common shareholders	$	20,762	$	30,585
Add: Income from conversion of Class C Common Stock	1,477		1,995
Adjusted net income attributable to common shareholders	22,239		32,580

Basic net earnings per share	$	0.09	$	0.14
Diluted net earnings per share	$	0.09	$	0.14

Basic weighted average shares outstanding	223,623		212,759
Add: Dilutive effects of equity awards	925		2,046
Add: Dilutive effects of conversion	19,156		19,156
Diluted weighted average shares outstanding	243,704		233,961