Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing earnings available to common shareholders by the weighted average number of common shares outstanding. Diluted EPS is computed after adjusting the numerator and denominator of the basic EPS computation for the effects of dilutive potential common shares outstanding during the period, if any. The effects include adjustments to the numerator for any change in fair market value of derivative liabilities (related to the Series C convertible preferred stock and warrants, and the convertible loan) during the period the convertible securities are dilutive. The computation of basic and diluted earnings per common share is presented below:



	Three months ended				Nine months ended
(dollars in thousands, except per share data)	September 30,				September 30,
	2015		2014		2015		2014
Basic and Diluted Earnings per Share
Calculation: *
Numerator: basic
Net earnings (loss) attributable to common shareholders:
Continuing operations	$	10,158	$	(4,894)	$	3,790	$	(18,556)
Discontinued operations		158		1,628		2,287		2,639
Net earnings (loss) attributable to common shareholders - total basic	$	10,316	$	(3,266)	$	6,077	$	(15,917)
Numerator: diluted
Net earnings (loss) attributable to common shareholders:
Continuing operations	$	10,158	$	(4,894)	$	3,790	$	(18,556)
Preferred stock dividend		522		0		1,543		0
Preferred stock derivative liability change in fair market value		(5,217)		0		(4,812)		0
Warrant derivative liability change in fair market value		(2,678)		0		(3,196)		0
Total continuing operations		2,785		(4,894)		(2,675)		(18,556)
Discontinued operations		158		1,628		2,287		2,639
Net earnings (loss) attributable to common shareholders - total diluted	$	2,943	$	(3,266)	$	(388)	$	(15,917)
Weighted average number of common shares - basic		4,927,503		4,685,815		4,868,610		3,629,588
Restricted stock		714		0		648		0
Preferred stock		18,750,000		0		18,750,000		0
Warrants - employees		5,745		0		5,745		0
Warrants		(361,115)		0		(78,272)		0
Weighted average number of common shares - diluted		23,322,847		4,685,815		23,546,731		3,629,588
Basic and Diluted Earnings
Per Common Share:
Net earnings (loss) attributable to common shareholders
per weighted average common share:
Continuing operations - basic	$	2.06	$	(1.04)	$	0.78	$	(5.11)
Discontinued operations - basic		0.03		0.35		0.47		0.73
Total - Basic EPS	$	2.09	$	(0.69)	$	1.25	$	(4.38)
Continuing operations - diluted	$	0.12	$	(1.04)	$	(0.11)	$	(5.11)
Discontinued operations - diluted		0.01		0.35		0.09		0.73
Total - Diluted EPS	$	0.13	$	(0.69)	$	(0.02)	$	(4.38)

* The loss (earnings) attributable to noncontrolling interest is allocated between continuing and discontinued operations for the purpose of the EPS calculation.

Potentially dilutive common shares, if any, have been excluded from the denominator if they are antidilutive to net earnings (loss) attributable to common shareholders. The number of weighted average shares of common stock for the three and nine months ended September 30, 2015 is significantly higher than the outstanding shares at September 30, 2014 due to the issuance of common stock from the rights offering during the last month of the second quarter of 2014.

The following table summarizes the weighted average of potentially dilutive securities that have been excluded from the denominator for the purpose of computing diluted earnings per share:



	Three months ended		Nine months ended
	September 30,		September 30,
	2015	2014	2015	2014
Outstanding stock options	5,625	17,563	5,625	17,563
Unvested stock awards outstanding	329	566	395	7,175
Warrants - employees	430,000	0	335,147	0
Common operating units *	12,126	12,126	12,126	12,126
LTIP units *	657,894	0	513,302	0
Warrants	3,750,000	3,750,000	3,750,000	3,750,000
Series C preferred stock	0	18,750,000	0	9,903,846
Convertible debt	0	0	0	737,179
Total potentially dilutive securities excluded from the denominator	4,855,974	22,530,255	4,616,595	14,427,889

* Long Term Incentive Plan (LTIP) and common operating units of SLP have been omitted from the denominator for the purpose of computing diluted earnings per share since the effect of including these amounts in the numerator and denominator would have no impact.