Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2020

Basic earnings (loss) per common share (“EPS”) is computed by dividing net income (loss) available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. In addition, the shares of common stock issuable pursuant to restricted stock awards, restricted stock units, performance stock units, and stock options outstanding under our 2019 Omnibus Incentive Compensation Plan, shares issuable under our Employee Stock Purchase Plan, and Series A Preferred Stock are included in the diluted EPS calculation to the extent they are dilutive.

The following is a reconciliation of the numerator and denominator of the basic and diluted EPS computation for net income (loss) per share:


	Three Months Ended June 30,						Six Months Ended June 30,
(In millions, except per share amounts)	2020		2019		2020		2019
Numerator:
Net income (loss) attributable to Covetrus	$	54	$	(10)	$	20	$	(23)

Adjustment for:
Dividends declared on Series A Preferred Stock	(2)		—		(2)		—
Allocation of earnings to participating securities	(6)		—		(1)		—

Income (loss) available to common shareholders	$	46	$	(10)	$	17	$	(23)

Denominator:
Basic
Weighted-average common shares outstanding	112		112		112		103
Diluted
Effect of dilutive shares	1		—		1		—
Weighted-average common shares outstanding	113		112		113		103
Income (loss) per share attributable to Covetrus:
Basic	$	0.40	$	(0.09)	$	0.15	$	(0.22)
Diluted	$	0.40	$	(0.09)	$	0.15	$	(0.22)

Potentially dilutive securities^(a)	19		5		12		3

(a) Potentially dilutive securities attributable to outstanding convertible Series A Preferred Stock, stock options, restricted stock units, and restricted stock awards were excluded from the computation of diluted earnings per share because the securities would have had an antidilutive effect.