COMMON STOCK AND EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2022

COMMON STOCK AND EARNINGS PER SHARE

COMMON STOCK AND EARNINGS PER SHARE

NOTE 14.       COMMON STOCK AND EARNINGS PER SHARE

Basic earnings per common share is computed by dividing net income (loss) attributable to common stockholders during the period by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is based on the assumption of the conversion of stock options and vesting of restricted stock at the beginning of each period using the treasury stock method at average cost for the periods. Effective as of January 1, 2022, diluted earnings per common share also reflects the 2025 Notes on an if-converted basis.

The following is a reconciliation of basic and diluted earnings per common share for each of the periods presented (in thousands, except share and per share data):

	Year Ended
	December 31, 2022		December 31, 2021		December 31, 2020
Basic and Diluted Earnings:
Net Income (Loss) Attributable to Common Stockholders, Used in Basic EPS	$	(1,623)	$	27,615	$	78,509
Add Back: Effect of Dilutive Interest Related to 2025 Notes (1)		—		—		—
Net Income (Loss) Attributable to Common Stockholders, Used in Diluted EPS	$	(1,623)	$	27,615	$	78,509
Basic and Diluted Shares:
Weighted Average Shares Outstanding, Basic		18,508,201		17,676,809		14,114,631
Common Shares Applicable to Dilutive Effect of 2025 Notes (2)		—		—		—
Weighted Average Shares Outstanding, Diluted		18,508,201		17,676,809		14,114,631
Per Share Information:
Net Income (Loss) Attributable to Common Stockholders
Basic and Diluted	$	(0.09)	$	1.56	$	5.56

(1) As applicable, includes interest expense, amortization of discount, amortization of fees, and other changes in net income or loss that would result from the assumed conversion of the 2025 Convertible Senior Notes to derive FFO effective January 1, 2022 due to the implementation of ASU 2020-06 which requires presentation on an if-converted basis. For the year ended December 31 2022, a total of $2.2 million of interest was not included, as the impact of the 2025 Notes, if-converted, would be antidilutive to the net loss attributable to common stockholders of $1.6 million.

(2) A total of 3.1 million shares, representing the dilutive impact of the 2025 Notes, upon adoption of ASU 2020-06 effective January 1, 2022, were not included in the computation of diluted net loss attributable to common stockholders for the year ended December 31, 2022 because they were antidilutive to the net loss attributable to common stockholders of $1.6 million.

There were no potentially dilutive securities for years ended December 31, 2022, 2021, or 2020. The effect of 68,269, 2,497, and 39,558 potentially dilutive securities were not included for the years ended December 31, 2022, 2021 and 2020, respectively, as the effect would be anti-dilutive.

Effective January 1, 2022, the Company adopted ASU 2020-06 whereby diluted EPS includes the dilutive impact, if any, of the 2025 Notes using the if-converted method, irrespective of intended cash settlement. The Company intends to settle its 3.875% Convertible Senior Notes due 2025 (the “2025 Notes”) in cash upon conversion with any excess conversion value to be settled in shares of our common stock. The Company elected, upon adoption, to utilize the modified retrospective approach, negating the required restatement of EPS for periods prior to adoption. The Company overcame the presumption of share settlement prior to the adoption of ASU 2020-06, and therefore, there was no dilutive impact for the years ended December 31, 2021 or 2020. The effect of 3.1 million potentially dilutive 2025 Notes, if-converted, were not included for the year ended December 31, 2022, as the effect would be anti-dilutive.