Earnings per share

Prior to the consummation of the Pace Business Combination, our Preferred Shares and their related accumulated Non-cash PIK Dividends were participating securities. If a dividend was declared or paid on our Predecessor's ordinary shares, holders of our Predecessor's ordinary shares and Preferred Shares were entitled to proportionate shares of such dividend, with the holders of our Predecessor's Preferred Shares participating on an as-if converted basis.

Under the two-class method, basic earnings (losses) per share (“EPS”) attributable to ordinary shareholders is computed by dividing the net income (loss) attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Net income (loss) attributable to ordinary shareholders is determined by allocating undistributed earnings between ordinary and preferred shareholders. For periods in which there are undistributed losses, there is no allocation of undistributed earnings to preferred shareholders.

Diluted EPS attributable to ordinary shareholders is computed by using the more dilutive result of the two-class method, the if-converted method or the treasury stock method. The if-converted method uses the weighted-average number of ordinary shares outstanding during the period, including potentially dilutive ordinary shares assuming the conversion of the outstanding Preferred Shares of our Predecessor, as of the first day of the reporting period. The dilutive effect of awards under our equity compensation plan is reflected in diluted earnings per share by application of the treasury stock method.

Under the two-class method, the number of shares used in the computation of diluted earnings per share is the same as that used for the computation of basic earnings per share for participating securities, as the result would be anti-dilutive. The net income attributable to ordinary shareholders is not allocated to the Preferred Shares until all other reserves have been exhausted or such loss cannot be covered in any other way.

The calculations of basic and diluted EPS are as follows ($ in thousands):



	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018		2017
Numerator:
Net income (loss)	$	16,821	$	(10,530	)	$	38,638	$	17,109
Non-cash dividend to warrant holders	—		(879		)	—		(879		)
Preferred Share dividends	—		—			—		(7,922		)
Allocation of undistributed earnings to preferred shareholders	—		—			—		(1,359		)
Numerator for basic EPS - income (loss) available to ordinary shareholders	16,821		(11,409		)	38,638		6,949
Add back Preferred Share dividends ⁽¹⁾	—		—			—		—
Add back undistributed earnings to preferred shareholders ⁽¹⁾	—		—			—		—
Numerator for diluted EPS - income (loss) available to ordinary shareholders after assumed conversions	$	16,821	$	(11,409	)	$	38,638	$	6,949
Denominator:
Denominator for basic EPS - weighted-average shares	116,987,887		104,064,220			113,685,219		83,275,443
Effect of dilutive securities:
Unvested restricted share awards	337,336		—			296,544		14,441
Preferred Shares	—		—			—		—
Denominator for diluted EPS - adjusted weighted-average shares	117,325,223		104,064,220			113,981,763		83,289,884

EPS - Basic	$	0.14	$	(0.11	)	$	0.34	$	0.08
EPS - Diluted	$	0.14	$	(0.11	)	$	0.34	$	0.08

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⁽¹⁾For the six months ended June 30, 2017, Preferred Share dividends of our Predecessor of $7.9 million and the preferred shareholders’ allocation of undistributed earnings of our Predecessor of $1.4 million were not added back for purposes of calculating diluted EPS because the effect of treating our Predecessor's Preferred Shares as if they had been converted to their 15,927,778 ordinary share equivalents as of January 1, 2017 was anti-dilutive.

For the three months ended June 30, 2018 and 2017, 538,951 and 265,222 of unvested performance-based equity awards, respectively, were not included in the computation of diluted EPS as the performance criteria were not met as of the end of the reporting period. For the three months ended June 30, 2017, 1,400,386 of unvested restricted share awards are not included in the computation of diluted EPS as their effect would have been anti-dilutive.

For the six months ended June 30, 2018 and 2017, 538,951 and 265,222 shares of unvested performance-based equity awards, respectively, were not included in the computation of diluted EPS after assumed conversions as the performance criteria were not met as of the end of the reporting period.

For the three and six months ended June 30, 2018 and 2017, outstanding Earnout Warrants to acquire a total of 3,000,000 ordinary shares were not included in the computation of diluted EPS after assumed conversions because the warrants were not exercisable as of June 30, 2018 or June 30, 2017, respectively.