Earnings (Loss) per Share

12 Months Ended

Dec. 31, 2019

The Company reports its earnings per share under the two-class method. Under this method, potentially dilutive securities are excluded from the calculation of diluted earnings per share (as well as their related impact on the net income available to common shareholders) when their impact on net income available to common shareholders is anti-dilutive.

Potentially dilutive securities for the years ended December 31, 2019, 2018, and 2017 included all outstanding stock options, RSAs, and RSUs, which were included in the calculation of diluted earnings per share for these periods. The potentially dilutive effect of outstanding warrants and the underlying shares exercisable under the Company’s Convertible Notes were excluded from diluted shares outstanding as the exercise price exceeded the average market price of the Company’s common shares. The effect of the note hedge, described in Note. 11. Debt, was also excluded as the effect is anti-dilutive.

Additionally, the restricted shares issued under RSAs have a non-forfeitable right to cash dividends, if and when declared by the Company. Accordingly, restricted shares issued under RSAs are considered to be participating securities. For the years ended December 31, 2019 and 2018, there were no unvested RSAs. For the year ended December 31, 2017, the Company did not allocate the undistributed loss among the vested restricted shares as they did not carry an obligation to share in the loss.

The allocated details are as follows:

Net income (loss) per share (in thousands excluding share and per share amounts)



	Year Ended December 31,
	2019		2018		2017

Net income (loss) available to common shareholders	$	48,274	$	3,676	$	(145,350	)
Weighted average common basic shares outstanding (for basic calculation)	45,514,703		45,988,775		45,619,679
Dilutive effect of outstanding common stock options and RSUs	500,631		447,664		—
Weighted average common dilutive shares outstanding (for diluted calculation)	46,015,334		46,436,439		45,619,679

Net income (loss) per common share - basic	$	1.06	$	0.08	$	(3.19	)
Net income (loss) per common share - diluted	$	1.05	$	0.08	$	(3.19	)

The computations of diluted earnings per share for the years ended December 31, 2019 and 2018 exclude approximately 0.1 million and 0.3 million, respectively, potentially dilutive common shares because the effect of including these shares in the computation would have been antidilutive. In addition, the computation of diluted earnings per share for the year ended December 31, 2019 excludes approximately 0.2 million weighted average dilutive shares that are contingently issuable, consisting of market-based and performance based awards for which all necessary conditions had not been satisfied.