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Earnings (Loss) Per Share
12 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share

15.

Earnings (Loss) Per Share

Beginning in March 2019, we use the two-class method to calculate earnings per share 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. During periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company.  The following is a reconciliation of the numerator and denominator of basic and diluted earnings (loss) per share for the years ended December 31, 2020, 2019, and 2018:

 

(In thousands except per share data)

 

Year Ended December 31,

 

Numerator:

 

2020

 

 

2019

 

 

2018

 

Income from continuing operations attributable to Tivity

   Health, Inc. - numerator for earnings (loss) per share

 

$

56,869

 

 

$

45,217

 

 

$

97,902

 

Net income (loss) from discontinued operations attributable to

   Tivity Health, Inc. - numerator for earnings (loss) per share

 

 

(280,500

)

 

 

(332,038

)

 

 

901

 

Net income (loss) attributable to Tivity Health, Inc. - numerator for

   earnings (loss) per share

 

$

(223,631

)

 

$

(286,821

)

 

$

98,803

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Shares used for basic income (loss) per share

 

 

48,746

 

 

 

46,509

 

 

 

40,078

 

Effect of dilutive stock options and restricted stock units

   outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Non-qualified stock options

 

 

29

 

 

 

90

 

 

 

264

 

Restricted stock units

 

 

412

 

 

 

489

 

 

 

299

 

Performance-based stock units

 

 

29

 

 

 

15

 

 

 

 

Warrants related to Cash Convertible Notes

 

 

 

 

 

 

 

 

2,013

 

Market stock units

 

 

1

 

 

 

 

 

 

419

 

Shares used for diluted income (loss) per share

 

 

49,217

 

 

 

47,103

 

 

 

43,073

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share attributable to Tivity Health, Inc. - basic:

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

1.17

 

 

$

0.97

 

 

$

2.44

 

Discontinued operations

 

$

(5.75

)

 

$

(7.14

)

 

$

0.02

 

Net income (loss) (1)

 

$

(4.59

)

 

$

(6.17

)

 

$

2.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share attributable to Tivity Health, Inc. -

   diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

1.16

 

 

$

0.96

 

 

$

2.27

 

Discontinued operations

 

$

(5.70

)

 

$

(7.05

)

 

$

0.02

 

Net income (loss)

 

$

(4.54

)

 

$

(6.09

)

 

$

2.29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive securities outstanding not included in the computation of

   earnings (loss) per share because their effect is anti-dilutive:

 

 

 

 

 

 

 

 

 

 

 

 

Non-qualified stock options

 

 

186

 

 

 

70

 

 

 

56

 

Restricted stock units

 

 

242

 

 

 

192

 

 

 

36

 

Performance-based stock units

 

 

24

 

 

 

 

 

 

 

Restricted stock awards

 

 

26

 

 

 

102

 

 

 

 

 

 

(1)

Figures may not add due to rounding.

 

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