Earnings (Loss) per Share

3 Months Ended

Mar. 31, 2020

Basic earnings (loss) per share ("EPS") is computed by dividing net income (loss) available to common stockholders by the weighted-average number of shares of common stock outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to the potential dilution, if any, that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, using the more dilutive of the two-class method or if-converted method. Diluted EPS excludes potential shares of common stock if their effect is anti-dilutive. If there is a net loss in any period, basic and diluted EPS are computed in the same manner.

The two-class method determines net income (loss) per common share for each class of common stock and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common shareholders for the period to be allocated between different classes of common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. We apply the two-class method for EPS when computing net income (loss) per Class A and Class C common shares.

The Predecessor had one class of shares outstanding. As of March 31, 2020, we have not issued any instruments that were considered to be participating securities. The Successor’s weighted average shares of Class A and Class C common stock have been combined in the denominator of basic and diluted earnings (loss) per share because they have equivalent economic rights. The following tables set forth the computation of our loss per share:



	Successor			Predecessor
(in millions, except per share amounts)	Three Months Ended March 31, 2020			Three Months Ended March 31, 2019

Net loss	$	(3.6	)	$	(3.4	)
Income allocated to participating preferred shares	—			—

Net loss attributable to common stockholders for basic and diluted EPS	$	(3.6	)	$	(3.4	)


Basic weighted average common shares outstanding	70,862,576			995
Denominator adjustments for diluted EPS:
Assumed exercise of warrants	—			—
Assumed vesting of RSUs	—			—

Dilutive weighted average common shares outstanding	70,862,576			995


Loss per share attributable to common stockholders:
Basic	$	(0.05	)	$	(3,387.94	)
Diluted	$	(0.05	)	$	(3,387.94	)

The following securities were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive or because milestones were not yet achieved for awards contingent on the achievement of performance milestones:



	Successor	Predecessor
	Three Months Ended March 31, 2020	Three Months Ended March 31, 2019

Warrants on Common Stock	20,108,744	—
Restricted Stock Units
and Performance-based
Restricted Stock Units	1,314,648	—
	21,423,392	—