Earnings (Loss) Per Share

3 Months Ended

Mar. 31, 2023

8. 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) 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).


	Three Months Ended March 31,
	2023		2022
Net income (loss) – basic and diluted numerator	$	7,229	$	(34,354	)
Weighted average shares – basic (denominator):		101,331		100,075
Dilutive effect of stock-based awards		2,605		—
Weighted average shares including conversions – diluted (denominator)		103,936		100,075

As of March 31, 2023, we had 7.5 million stock 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 as the exercise price per warrant exceeded the average price of our common stock and have been excluded from the computation of EPS for all periods presented.

The computation of EPS for the three-month period ended March 31, 2023 excludes non-vested stock-based awards of 349,784 shares, as the inclusion of such would have been antidilutive for the periods.