NOTE 14: EARNINGS PER SHARE

The Company computes earnings (loss) per common share (“EPS”) from continuing operations, discontinued operations and net earnings (loss) per common share 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. In a period when the Company’s distributed earnings

exceed undistributed earnings, no allocation to participating securities or dilutive securities is performed. 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 September 30, 2017, there were 47,356 DEUs outstanding, which will vest at the time that the underlying RSU or PSU vests.

The Company computes basic EPS by dividing net (loss) income from continuing operations, income (loss) from discontinued operations, and net (loss) income, respectively, 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 (loss) income from continuing operations, income (loss) from discontinued operations, and net (loss) income, respectively, 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 nine months ended September 30, 2017, 64,751 and 83,493, respectively, of the weighted-average Warrants outstanding have been excluded from the below table. For the three and nine months ended September 30, 2016, 159,243 and 194,943, 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						Nine Months Ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
EPS numerator:
(Loss) income from continuing operations, as reported	$	(18,687	)	$	153,839		$	(149,722	)	$	16,313
Less: Dividends distributed to Warrants	14			40			60			127
Less: Undistributed earnings allocated to Warrants	—			218			—			—
(Loss) income from continuing operations attributable to common shareholders for basic EPS	$	(18,701	)	$	153,581		$	(149,782	)	$	16,186
Add: Undistributed earnings allocated to dilutive securities	—			1			—			—
(Loss) income from continuing operations attributable to common shareholders for diluted EPS	$	(18,701	)	$	153,582		$	(149,782	)	$	16,186
(Loss) income from discontinued operations attributable to common shareholders for basic and diluted EPS	$	—		$	(8,074	)	$	15,039		$	(21,018	)
Net (loss) income attributable to common shareholders for basic EPS	$	(18,701	)	$	145,507		$	(134,743	)	$	(4,832	)
Net (loss) income attributable to common shareholders for diluted EPS	$	(18,701	)	$	145,508		$	(134,743	)	$	(4,832	)

EPS denominator:
Weighted average shares outstanding - basic	87,257			89,950			86,984			91,367
Impact of dilutive securities	—			503			—			363
Weighted average shares outstanding - diluted	87,257			90,453			86,984			91,730

Basic (Loss) Earnings Per Common Share from:
Continuing Operations	$	(0.21	)	$	1.71		$	(1.72	)	$	0.18
Discontinued Operations	—			(0.09		)	0.17			(0.23		)
Net (Loss) Income Per Common Share	$	(0.21	)	$	1.62		$	(1.55	)	$	(0.05	)

Diluted (Loss) Earnings Per Common Share from:
Continuing Operations	$	(0.21	)	$	1.70		$	(1.72	)	$	0.18
Discontinued Operations	—			(0.09		)	0.17			(0.23		)
Net (Loss) Income Per Common Share	$	(0.21	)	$	1.61		$	(1.55	)	$	(0.05	)

Since the Company was in a net loss position for the three and nine months ended September 30, 2017, there was no difference between the number of shares used to calculate basic and diluted loss per share. For the nine months ended September 30, 2016, even though the Company had a net loss, pursuant to ASC 260, since the Company had net income from continuing operations, it considered the impact of dilutive securities when calculating diluted EPS. Because of their anti-dilutive effect, 2,102,827 and 3,036,885 common share equivalents, comprised of NSOs, PSUs, Supplemental PSUs and RSUs, have been excluded from the diluted EPS calculation for the three and nine months ended September 30, 2017, respectively. Because of their anti-dilutive effect, 1,714,643 and 1,786,255 common share equivalents, comprised of NSOs, PSUs, Supplemental PSUs and RSUs, have been excluded from the diluted EPS calculation for the three and nine months ended September 30, 2016, respectively.