Earnings Per Share

9 Months Ended

Sep. 30, 2022


5.			Earnings Per Share

Basic earnings (loss) per common share is computed by dividing the net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per common share is calculated in the same manner, but includes the impact of potentially dilutive securities. Potentially dilutive securities during the Successor Periods below consist of issuable shares related to warrants, unvested RSUs, and unvested performance share units (“PSUs”) and during the Predecessor Period have historically consisted of unvested RSUs, contingently issuable shares related to preferred stock and convertible senior notes unless their effect was antidilutive.

The reconciliations between basic and diluted earnings (loss) per share are as follows:


	Successor								Predecessor
	Three Months Ended September 30, 2022		Three Months Ended September 30, 2021		Nine Months Ended September 30, 2022		Period from February 10, 2021 through September 30, 2021		Period from January 1, 2021 through February 9, 2021
Numerator
Net income (loss), basic and diluted	$	883	$	(345)	$	1,356	$	(489)	$	5,383

Denominator (in thousands)
Weighted average common shares outstanding, basic	121,150		98,221		122,924		98,040		9,781
Effect of potentially dilutive securities
Preferred stock	—		—		—		—		290
Warrants	22,794		—		21,692		—		—
Restricted stock units	396		—		368		—		—
Performance share units	50		—		47		—		—
Weighted average common shares outstanding, diluted	144,390		98,221		145,031		98,040		10,071

Earnings (loss) per common share:
Basic	$	7.29	$	(3.51)	$	11.03	$	(4.99)	$	550.35
Diluted	$	6.12	$	(3.51)	$	9.35	$	(4.99)	$	534.51

Successor

During the 2022 Successor Quarter and 2022 Successor Period, the diluted earnings per share calculation excludes the effect of 1,191,877 reserved shares of common stock and 2,248,726 reserved Class C Warrants related to the settlement of General Unsecured Claims associated with the Chapter 11 Cases, as all necessary conditions had not been met for such shares to be considered dilutive shares during the 2022 Successor Quarter and 2022 Successor Period.

During the 2021 Successor Quarter and the 2021 Successor Period, the diluted loss per share calculation excludes the effect of 1,767,203 reserved shares of common stock and 3,334,277 reserved Class C warrants related to the settlement of General Unsecured Claims associated with the Chapter 11 Cases, as all necessary conditions had not been met to be considered dilutive shares during the 2021 Successor Quarter and the 2021 Successor Period. Additionally, as both the 2021 Successor Quarter and the 2021 Successor Period had a net loss, the diluted loss per share calculation excludes the antidilutive effect, calculated using the treasury stock method, of

14,774,330 and 12,851,577 issuable shares related to warrants, 247,220 and 135,350 shares of restricted stock and 5,479 and 3,508 shares related to performance share units, respectively.

Predecessor

We had the option to settle conversions of the 5.50% convertible senior notes due 2026 with cash, shares or common stock or any combination thereof. As the price of our common stock was below the conversion threshold level for any time during the conversion period, there was no impact to diluted earnings per share.