NOTE 13: EARNINGS PER SHARE

The Company computes earnings (loss) per common share (“EPS”) under the two-class method which requires the allocation of all distributed and undistributed earnings to common stock and other participating securities based on their respective rights to receive distributions of earnings or losses. The Company’s Class A Common Stock and Class B Common Stock equally share in distributed and undistributed earnings. The Company accounts for the Warrants as participating securities, as holders of the Warrants, in accordance with and subject to the terms and conditions of the Warrant Agreement, are entitled to receive ratable distributions of the Company’s earnings concurrently with such distributions made to the holders of Common Stock, subject to certain restrictions relating to FCC rules and requirements. Under the terms of the Company’s RSU and PSU agreements, unvested RSUs and PSUs contain forfeitable rights to dividends and DEUs. Because the DEUs are forfeitable, they are defined as non-participating securities. As of June 30, 2016, there were 30,151 DEUs outstanding, which will vest at the time that the underlying RSU or PSU vests.

The Company computes basic EPS by dividing net income (loss) applicable to common shares by the weighted average number of common shares outstanding during the period. In accordance with the two-class method, undistributed earnings applicable to the Warrants are excluded from the computation of basic EPS. Diluted EPS is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period as adjusted for the assumed exercise of all outstanding stock awards. The calculation of diluted EPS assumes that stock awards outstanding were exercised at the beginning of the period. The stock awards are included in the calculation of diluted EPS only when their inclusion in the calculation is dilutive.

ASC Topic 260, “Earnings per Share,” states that the presentation of basic and diluted EPS is required only for common stock and not for participating securities. For the three and six months ended June 30, 2016, 167,671 and 212,989, respectively, of the weighted-average Warrants outstanding, have been excluded from the below table. For the three and six months ended June 30, 2015, 1,024,705 and 1,450,390, respectively, of the weighted-average Warrants outstanding, have been excluded from the below table.

The calculation of basic and diluted EPS is presented below (in thousands, except for per share data):



	Three Months Ended						Six Months Ended
	June 30, 2016			June 30, 2015			June 30, 2016			June 30, 2015
EPS numerator:
Net (loss) income, as reported	$	(161,563	)	$	(3,265	)	$	(150,470	)	$	33,152
Less: Dividends distributed to Warrants	40			172			88			172
Less: Undistributed earnings allocated to Warrants	—			—			—			497
Net (loss) income attributable to common shareholders for basic EPS	$	(161,603	)	$	(3,437	)	$	(150,558	)	$	32,483
Add: Undistributed earnings allocated to dilutive securities	—			—			—			1
Net (loss) income attributable to common shareholders for diluted EPS	$	(161,603	)	$	(3,437	)	$	(150,558	)	$	32,484

EPS denominator:
Weighted average shares outstanding - basic	91,676			95,337			92,083			95,374
Impact of dilutive securities	—			—			—			191
Weighted average shares outstanding - diluted	91,676			95,337			92,083			95,565

Net (loss) income per share attributable to common shareholders:
Basic	$	(1.76	)	$	(0.04	)	$	(1.64	)	$	0.34
Diluted	$	(1.76	)	$	(0.04	)	$	(1.64	)	$	0.34

Since the Company was in a net loss position for the three and six months ended June 30, 2016 as well as for the three months ended June 30, 2015, there was no difference between the number of shares used to calculate basic and diluted loss per share in these periods. Because of their anti-dilutive effect, 2,160,479 and 2,098,608 common share equivalents, comprised of NSOs, PSUs, Supplemental PSUs and RSUs, have been excluded from the diluted EPS calculation for the three and six months ended June 30, 2016, respectively. Because of their anti-dilutive effect, 1,940,343 and 1,382,273 common share equivalents, comprised of NSOs, PSUs and RSUs, have been excluded from the diluted EPS calculation for the three and six months ended June 30, 2015, respectively.