Earnings Per Common Share

Basic earnings per common share (“EPS”) is based upon the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that would occur upon issuance of common shares for awards under stock-based compensation plans or conversion of preferred stock, but only to the extent that they are considered dilutive.

The following table shows the computation of basic and diluted EPS:



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in millions, except per share amounts)	2018			2017			2018			2017
Numerator:
Net (loss) income	$	(17.7	)	$	(11.0	)	$	(39.8	)	$	51.9
Preferred stock dividends	2.6			2.6			7.8			7.8
Net (loss) income applicable to common shareowners - basic and diluted	$	(20.3	)	$	(13.6	)	$	(47.6	)	$	44.1
Denominator:
Weighted average common shares outstanding - basic	50.1			42.2			45.0			42.1
Stock-based compensation arrangements	—			—			—			0.2
Weighted average common shares outstanding - diluted	50.1			42.2			45.0			42.3
Basic net (loss) earnings per common share	$	(0.41	)	$	(0.32	)	$	(1.06	)	$	1.05
Diluted net (loss) earnings per common share	$	(0.41	)	$	(0.32	)	$	(1.06	)	$	1.04

For the three and nine months ended September 30, 2018, the Company had a net loss available to common shareholders and, as a result, all common stock equivalents were excluded from the computation of diluted EPS as their inclusion would have been anti-dilutive. For the three months ended September 30, 2017, the Company had a net loss available to common shareholders and, as a result, all common stock equivalents were excluded from the computation of diluted EPS as their inclusion would have been anti-dilutive. For the nine months ended September 30, 2017, awards under the Company's stock-based compensation plans for common shares of 0.2 million were excluded from the computation of diluted EPS as the inclusion would have been anti-dilutive. For all periods presented, preferred stock convertible into 0.9 million common shares was excluded as it was anti-dilutive.

In conjunction with the merger of Hawaiian Telcom, the Company issued 7.7 million Common Shares as a part of the merger consideration. In addition, the Company granted 0.1 million time-based restricted stock units to certain Hawaiian Telcom employees under the Hawaiian Telcom 2010 Equity Incentive Plan.