Earnings Per Share

9 Months Ended

Sep. 30, 2019

Note 9—Earnings Per Share

Basic earnings per share (“EPS”) is calculated by dividing net income available to Class A Common Stock by the weighted average shares of Class A Common Stock outstanding during each period. Diluted EPS is calculated by dividing adjusted net income available to Class A Common Stock by the weighted average shares of diluted Class A Common Stock outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for the diluted EPS calculation consists of (i) unvested restricted stock and performance stock units, outstanding stock options and warrants using the treasury stock method, and (ii) the Company’s Class C Common Stock using the “if-converted” method, which is net of tax. When a loss from continuing operations exists, all dilutive securities and potentially dilutive securities are anti-dilutive and are therefore excluded from the computation of diluted earnings per share.

The following table reflects the allocation of net income to common shareholders and EPS computations for the periods indicated based on a weighted average number of common shares outstanding for the period:



	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
(in thousands, except per share data)	2019			2018		2019		2018
Net income (loss) attributable to Class A Common Stock	$	(3,585	)	$	39,288	$	6,180	$	168,919
Add: Income from conversion of Class C Common Stock	—			1,717		—		—
Adjusted net income (loss) attributable to Class A Common Stock	$	(3,585	)	$	41,005	$	6,180	$	168,919

Basic net earnings (loss) per share of Class A Common Stock	$	(0.01	)	$	0.15	$	0.02	$	0.64
Diluted net earnings (loss) per share of Class A Common Stock	$	(0.01	)	$	0.15	$	0.02	$	0.63

Basic weighted average shares of Class A Common Stock outstanding	266,205			263,959		265,025		263,029
Add: Dilutive effect of potential common shares	—			3,766		60		3,625
Add: Dilutive effects of conversion of Class C Common Stock	—			12,189		—		—
Diluted weighted average shares of Class A Common Stock outstanding	266,205			279,914		265,085		266,654

The following table presents shares excluded from the diluted earnings per share calculation as their impacts were anti-dilutive for the periods indicated:



	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
(in thousands)	2019⁽¹⁾	2018	2019	2018
Out-of-the-money stock options	4,817	142	4,680	318
Warrants	8,000	—	8,000	—
Restricted stock	3,827	—	2,313	—
Weighted average shares of Class C Common Stock	10,351	—	11,446	13,056
Performance stock units	—	—	—	52
Employee Stock Purchase Plan	8		—

⁽¹⁾

The Company recognized a net loss during the three months ended September 30, 2019. As a result, all potential common shares were anti-dilutive and excluded from the calculation of diluted net earnings per share.