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Earnings Per Share
9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Earnings Per Share

16.

Earnings Per Share

Beginning in March 2019, we use the two-class method to calculate earnings per share (“EPS”) as the unvested restricted stock awards outstanding under our equity incentive plan are participating shares with nonforfeitable rights to dividends. Under the two-class method, we compute earnings per share of Common Stock by dividing the sum of distributed earnings to common stockholders (currently not applicable as we do not pay dividends) and undistributed earnings allocated to common stockholders by the weighted average number of outstanding shares of Common Stock for the period.  In applying the two-class method, we allocate undistributed earnings to both shares of Common Stock and participating securities based on the number of weighted average shares outstanding during the period. Any undistributed losses are not allocated to unvested restricted stock as the restricted stockholders are not obligated to share in the losses.  Following is a reconciliation of the numerator and denominator of basic and diluted earnings per share for the three and nine months ended September 30, 2019 and 2018:

 

(In thousands except per share data)

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

   - numerator for earnings per share

 

$

13,920

 

 

$

25,357

 

 

$

36,271

 

 

$

69,375

 

Income from discontinued operations

   - numerator for earnings per share

 

 

 

 

 

 

 

 

 

 

 

901

 

Net income allocated to unvested restricted stock

 

 

(63

)

 

 

 

 

 

(140

)

 

 

 

Net income allocated to shares of Common Stock

 

$

13,857

 

 

$

25,357

 

 

$

36,131

 

 

$

70,276

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used for basic income per share

 

 

47,923

 

 

 

40,010

 

 

 

45,996

 

 

 

39,898

 

Effect of dilutive stock options and

   restricted stock units outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-qualified stock options

 

 

64

 

 

 

242

 

 

 

94

 

 

 

277

 

Restricted stock units

 

 

597

 

 

 

263

 

 

 

495

 

 

 

333

 

Market stock units

 

 

 

 

 

468

 

 

 

 

 

 

497

 

Warrants related to Cash Convertible Notes

 

 

 

 

 

1,844

 

 

 

 

 

 

2,229

 

Shares used for diluted income per share

 

 

48,584

 

 

 

42,827

 

 

 

46,585

 

 

 

43,234

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.29

 

 

$

0.63

 

 

$

0.79

 

 

$

1.74

 

Discontinued operations

 

$

 

 

$

 

 

$

 

 

$

0.02

 

Net income

 

$

0.29

 

 

$

0.63

 

 

$

0.79

 

 

$

1.76

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.29

 

 

$

0.59

 

 

$

0.78

 

 

$

1.60

 

Discontinued operations

 

$

 

 

$

 

 

$

 

 

$

0.02

 

Net income

 

$

0.29

 

 

$

0.59

 

 

$

0.78

 

 

$

1.63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive securities outstanding not included in the

   computation of earnings per share

   because their effect is anti-dilutive:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-qualified stock options

 

 

70

 

 

 

81

 

 

 

74

 

 

 

47

 

Restricted stock units

 

 

276

 

 

 

47

 

 

 

207

 

 

 

34

 

Restricted stock awards

 

 

156

 

 

 

 

 

 

94

 

 

 

 

 

Market stock units and performance stock units outstanding are considered contingently issuable shares, and certain of these stock units were excluded from the calculations of diluted earnings per share for all periods presented as the performance criteria had not been met as of the end of the reporting periods.