EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2015

NOTE D—EARNINGS PER SHARE

Basic earnings (loss) per share is computed by dividing net earnings (loss) applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is based on the assumption that stock options are converted into common shares using the treasury stock method and convertible bonds and preferred stock are converted using the if-converted method. Conversion is not assumed if the results are anti-dilutive. Potential common shares for the nine months ended September 30, 2015 and 2014 of 38,072 and 38,072, respectively, relating to convertible bonds and preferred stock were excluded from the computation of diluted earnings per share because they are anti-dilutive. Potential common shares of 3,989,690 and 2,322,263 relating to stock options and restricted stock were excluded from the computation of diluted earnings per share for the nine months ended September 30, 2015 and 2014, respectively, because they are anti-dilutive. At September 30, 2015 the convertible bonds may be converted from the date of issuance until maturity at 100% of principal amount into common stock of the Company at a price of $50. The preferred stock may be converted at the discretion of the holder or upon meeting certain conditions at the discretion of the Company (see Note C).

Basic and diluted net earnings (loss) per share are computed based on the following information:

	Three Months Ended September 30, 2015			Three Months Ended September 30, 2014		Nine Months Ended September 30, 2015			Nine Months Ended September 30, 2014
	(in thousands, except for per share data)					(in thousands, except for per share data)

Net earnings (loss) applicable to common shareholders	$	(186,063	)	$	3,723	$	(373,616	)	$	22,682


Weighted average shares outstanding — basic	81,203,466			78,549,255		81,092,772			75,121,693
Effect of dilutive securities — restricted stock	—			12,524		—			—
Effect of dilutive securities — stock options	—			312,440		—			192,473


Weighted average shares outstanding - diluted	81,203,466			78,874,219		81,092,772			75,314,166


Basic net earnings (loss) per share	$	(2.29	)	$	0.05	$	(4.61	)	$	0.30
Diluted net earnings (loss) per share	$	(2.29	)	$	0.05	$	(4.61	)	$	0.30