Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2022

10. Earnings (Loss) Per Share

We compute basic earnings (loss) per share by dividing net income (loss) available to holders of our common stock by the weighted-average number of shares of our common stock outstanding during the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue our common stock (common stock equivalents) were exercised or converted into common stock. Basic and diluted earnings per share (or EPS) for the Successor periods including the three-month and nine-month periods ended September 30, 2022 and the period from April 24, 2021 through September 30, 2021 and the Predecessor period from January 1, 2021 through April 23 2021 was calculated in accordance with the treasury stock method, and includes all potentially dilutive stock equivalents, including warrants, restricted stock awards, restricted stock unit awards and performance stock unit awards.

For periods in which a net loss available to holders of our common stock exists, no amounts are allocated to non-vested share awards, as the inclusion of such amounts would be antidilutive.

A reconciliation of the numerators and denominators of our basic and diluted EPS computations are summarized as follows (in thousands).


	Successor
	Three Months Ended September 30,
	2022		2021
Net income (loss) – basic and diluted numerator	$	5,510	$	(5,182	)
Weighted average shares – basic (denominator):		100,875		100,075
Dilutive effect of stock-based awards		1,398		—
Weighted average shares including conversions – diluted (denominator)		102,273		100,075


	Successor						Predecessor
				Period from			Period from
	Nine Months			April 24, 2021			January 1, 2021
	Ended			through			through
	September 30, 2022			September 30, 2021			April 23, 2021
Net loss – basic and diluted numerator	$	(50,773	)	$	(52,475	)	$	(1,961,989	)
Weighted average shares – basic (denominator):		100,356			100,068			138,054
Dilutive effect of stock-based awards		—			—			—
Weighted average shares including conversions – diluted (denominator)		100,356			100,068			138,054

As of September 30 2022, we had 7,530,233 warrants outstanding (or Warrants) to purchase shares of our common stock that were exercisable for one share of common stock per Warrant at an exercise price of $29.22. The Warrants are exercisable until they expire on April 23, 2026. The presumed exercise of these Warrants into shares of our common stock would have an antidilutive effect and have been excluded from the computation of EPS for all Successor periods presented.

The computation of EPS for the Successor nine-month period ended September 30, 2022 and the period from April 24, 2021 through September 30, 2021, excludes non-vested stock-based awards of 3,768,207 shares and 2,222,116 shares, respectively, as the inclusion of such would have been antidilutive for the periods.