Earnings (Loss) Per Share

3 Months Ended

Mar. 31, 2017

For the three months ended March 31, 2016, basic and diluted earnings (loss) per common share is computed by dividing net income (loss) for that period by 42,702,842 common shares, which is the aggregate of 13,522,288 shares of Series A common stock, 711,992 shares Series B common stock and 28,468,562 shares of Series C common stock issued upon completion of the Spin-Off on July 22, 2016. The shares used in the calculation of diluted earnings per share for periods prior to the Spin-Off exclude issuances of 109,354 shares of common stock issued to pre-Spin-Off minority shareholders of CTI and 7,362,933 outstanding awards to purchase shares of our common stock, which occurred after the Spin-Off.

For the three months ended March 31, 2017, basic earnings (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during that period. Diluted earnings (loss) per share gives effect to all dilutive potential shares outstanding resulting from employee stock options and restricted stock units during that period.

The shares used in the calculation of diluted earnings per share for periods following the Spin-Off exclude (a) options to purchase shares where the exercise price was greater than the average market price of common shares for the period, using the treasury-stock method, and therefore the effect of the inclusion would be anti-dilutive and (b) awards with performance-based conditions where the performance criteria has not been met as of the reporting date.

The following table sets forth net income (loss) and the basic and diluted shares used to calculate earnings per share (in thousands):



	Three Months Ended March 31,
	2017		2016
Net income (loss)	$	2,459	$	(1,990	)

Basic - weighted average shares outstanding	42,977		42,703
Weighted average effect of dilutive potential securities	1,693		—
Diluted - weighted average shares outstanding	44,670		42,703

Anti-dilutive securities	4,585		—