EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2018

18. EARNINGS PER SHARE

We determined that the Series B Preferred Shares are a participating security, and accordingly, our basic and diluted net income / loss per share is calculated using the two-class method. Under the two-class method, basic net income / loss per common share is computed by dividing the net income available to common shareholders after deducting contractual amounts of accretion on our Series B Preferred Shares and the income allocated to these shares by the weighted-average number of common shares outstanding during the period. Diluted net income / loss per share is computed by dividing the adjusted net income by the weighted-average number of dilutive shares outstanding during the period.

The components of basic and diluted earnings per share are as follows:



	For the Three Months Ended March 31,
	2018			2017
Income / (loss) from continuing operations	$	6,084		$	(5,982	)
Net loss attributable to noncontrolling interests	178			209
Less: preferred share accretion paid in kind (Note 13)	(2,447		)	(2,357		)
Less: income allocated to Series B Preferred Shares	(1,563		)	—
Income / (loss) from continuing operations available to common shareholders, net of noncontrolling interest	2,252			(8,130		)
Income / (loss) from discontinued operations, net of tax (Note 3)	988			(5,292		)
Net income / (loss) attributable to CME Ltd. available to common shareholders — basic	3,240			(13,422		)

Effect of dilutive securities
Dilutive effect of Series B Preferred Shares	65			—
Net income / (loss) attributable to CME Ltd. available to common shareholders — diluted	$	3,305		$	(13,422	)

Weighted average outstanding shares of common stock — basic ⁽¹⁾	158,039			154,795
Dilutive effect of common stock warrants, employee stock options and RSUs	83,866			—
Weighted average outstanding shares of common stock — diluted	241,905			154,795

Net income / (loss) per share:
Continuing operations — basic	$	0.01		$	(0.05	)
Continuing operations — diluted	0.01			(0.05		)
Discontinued operations — basic	0.01			(0.04		)
Discontinued operations — diluted	0.00			(0.04		)
Net income / (loss) attributable to CME Ltd. — basic	0.02			(0.09		)
Net income / (loss) attributable to CME Ltd. — diluted	0.01			(0.09		)

⁽¹⁾

For the purpose of computing basic earnings per share, the 11,211,449 shares of Class A common stock underlying the Series A Preferred Share are included in the weighted average outstanding shares of common stock - basic, because the holder of the Series A Preferred Share is entitled to receive any dividends payable when dividends are declared by the Board of Directors with respect to any shares of the common stock.

The following weighted-average, equity awards and convertible shares were excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive for the periods presented:



	For the Three Months Ended March 31,
	2018	2017
Employee stock options	—	2,011
RSUs	903	1,176
Series B Preferred Shares	—	105,658
Total	903	108,845

These instruments may become dilutive in the future. As set forth in the Certificate of Designation for the Series B Preferred Shares, the holders of our Series B Preferred Shares are not contractually obligated to share in our losses.