EARNINGS (LOSS) PER SHARE

The Company computes net income attributable to common stockholders using the two-class method required for capital structures that include participating securities. Under the two-class method, securities that participate in non-forfeitable dividends, such as the Company’s outstanding unvested restricted stock, are considered “participating securities.”

In applying the two-class method, (i) basic net income (loss) per share is computed by dividing net income (less any dividends paid on participating securities) by the weighted average number of shares of common stock and participating securities outstanding for the period and (ii) diluted earnings per share may include the additional effect of other securities, if dilutive, in which case the dilutive effect of such securities is calculated by applying the two-class method and the treasury stock method to the assumed exercise or vesting of potentially dilutive common shares. The method yielding the more dilutive result is ultimately reported for the applicable period. Potentially dilutive common stock equivalents primarily consist of employee stock options, and restricted stock units for calculations utilizing the two-class method, and also include unvested restricted stock, when utilizing the treasury method.

The following table presents the weighted-average number of common shares outstanding used in the calculation of basic and diluted income per share:



	Three Months Ended March 31,
	2014			2013
Numerator (in thousands):
Basic
Net income (loss)	$	(24,421	)	$	5,113
Undistributed earnings allocated to participating securities	—			(140		)
Total dividends declared / paid	(6,255		)	—
Dividends attributable to common stockholders	6,048			—
Net income (loss) attributable to common stockholders – basic	$	(24,628	)	$	4,973

Diluted
Net income (loss)	$	(24,421	)	$	5,113
Undistributed earnings allocated to participating securities	—			(139		)
Total dividends declared / paid	(6,255		)	—
Dividends attributable to common stockholders	6,048			—
Net income (loss) attributable to common stockholders – diluted	$	(24,628	)	$	4,974

Denominator:
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders – basic	48,329,375			47,859,774
Effect of potentially dilutive securities:
Common stock options and restricted stock units	—			244,468
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders – diluted	48,329,375			48,104,242

Basic net income (loss) per common share	$	(0.51	)	$	0.10
Diluted net income (loss) per common share	$	(0.51	)	$	0.10

Anti-dilutive equity-based incentive awards excluded from the computation of diluted income (loss) per share were immaterial for the applicable periods presented.

Revision of Prior Period Earnings (Loss) Per Share - Two-Class Method. In connection with the preparation of the Company’s Quarterly Report on Form 10-Q as of and for the three months ended September 30, 2013, the Company determined that its basic and diluted net income (loss) per share calculations should have been prepared using the “two-class method.” Previously, basic earnings (loss) per share was computed based upon the weighted-average number of common shares outstanding, excluding unvested restricted stock, and diluted income (loss) per share was computed based upon the weighted-average number of common shares outstanding, including the dilutive effect of common stock equivalents outstanding during the periods, determined by applying the treasury stock method to the assumed exercise of outstanding employee stock options, and the assumed vesting of outstanding unvested restricted stock and restricted stock units.

Pursuant to the guidance set forth in SAB No. 99, "Materiality," the Company concluded that the errors were not material to any of its prior period financial statements. Although the errors were immaterial to prior periods, the prior period financial statements presented herein were revised. The impact of the revision to the comparable prior period earnings (loss) per share calculations using the two-class method were as follows:



	Three Months Ended March 31,
	2013
Numerator (in thousands):
Net income attributable to common stockholders – basic and diluted - As Reported	$	5,113
Net income attributable to common stockholders – basic - As Adjusted	$	4,973
Net income attributable to common stockholders – diluted - As Adjusted	$	4,974

Denominator:
Weighted-average shares used in computing net income per share attributable to common stockholders – basic - As Reported	47,859,774
Weighted-average shares used in computing net income per share attributable to common stockholders – basic - As Adjusted	47,859,774
Weighted-average shares used in computing net income per share attributable to common stockholders – diluted - As Reported	48,354,444
Weighted-average shares used in computing net income per share attributable to common stockholders – diluted - As Adjusted	48,104,242

Basic net income per common share - As Reported	$	0.11
Basic net income per common share - As Adjusted	$	0.10
Diluted net income per common share - As Reported	$	0.11
Diluted net income per common share - As Adjusted	$	0.10