Earnings per Share

12 Months Ended

Dec. 31, 2020

Note 17—Earnings (Loss) per Share

For the year ended December 31, 2020, we recorded a net loss attributable to Penn Common Stock. As such, because the dilution from potential common shares was antidilutive, we used basic weighted-average common shares outstanding, rather than diluted weighted-average common shares outstanding when calculating diluted loss per share for the year ended December 31, 2020.

On February 20, 2020, the Company issued 883 shares of Series D Preferred Stock to certain individual stockholders affiliated with Barstool Sports which can be converted into 883,000 shares of Penn Common Stock. The Series D Preferred Stock will be entitled to participate equally and ratably in all dividends and distributions paid to holders of Penn Common Stock. Holders of the Company's Series D Preferred Stock are not obligated to absorb losses therefore the two-class method was not applied for the year ended December 31, 2020. (See Note 7 - Investments in and Advances to Unconsolidated Affiliates).

The stock options, RSAs, convertible preferred shares and convertible debt that could potentially dilute basic EPS in the future that were not included in the computation of diluted loss per share were as follows:


(in millions)			For the year ended December 31, 2020
Assumed conversion of dilutive stock options			3.0
Assumed conversion of dilutive RSAs			0.5
Assumed conversion of convertible preferred shares			0.7
Assumed conversion of convertible debt			9.1

The following table reconciles the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS for the years ended December 31, 2019 and 2018:


	For the year ended December 31,
(in millions)	2019	2018
Weighted-average common shares outstanding—Basic	115.7	97.1
Assumed conversion of:
Dilutive stock options	1.8	3.0
Dilutive RSAs	0.3	0.2
Weighted-average common shares outstanding—Diluted	117.8	100.3

Options to purchase zero, 2.4 million, and 0.7 million shares were outstanding during the years ended December 31, 2020, 2019 and 2018, respectively, but were not included in the computation of diluted EPS because they were antidilutive.

The following table presents the calculation of basic and diluted earnings (loss) for the Company’s common stock for the years ended December 31, 2020, 2019 and 2018:



(in millions, except per share data)	2020		2019		2018
Calculation of basic earnings (loss) per share:
Net income (loss) applicable to common stock	$	(669.5)	$	43.9	$	93.5
Weighted-average common shares outstanding - basic	134.0		115.7		97.1
Basic earnings (loss) per share	$	(5.00)	$	0.38	$	0.96

Calculation of diluted earnings (loss) per share:
Net income (loss) applicable to common stock	(669.5)		$	43.9	$	93.5
Weighted-average common shares outstanding - diluted	134.0		117.8		100.3
Diluted earnings (loss) per share	$	(5.00)	$	0.37	$	0.93