Net Income Per Share

3 Months Ended

Mar. 31, 2015

NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period, excluding any unvested restricted stock. In calculating diluted net income per share, the numerator is increased by interest and dividends on potentially dilutive securities, net of tax, and the denominator is increased by the weighted average number of shares resulting from potentially dilutive securities, assuming full conversion.

Net (loss) per share information reported for the three months ended March 31, 2015 is not comparative to the corresponding period in 2014 as a result of the emergence from Chapter 11 bankruptcy and the application of fresh start accounting. On the Effective Date, all debt and stock of the Predecessor Company were cancelled and new debt and stock for the Successor Company were issued.



	Successor			Predecessor
(in millions, except per share amounts)	Three Months Ended March 31, 2015			Three Months Ended March 31, 2014

Numerators for basic and diluted calculations (a):
Net (loss)	$	(15.4	)	$	(50.8	)

Denominator:
Weighted average common shares	9.0			5.0
Less: Weighted average unvested restricted stock	—			0.1
Denominator for basic calculation	9.0			4.9

Weighted average effect of dilutive securities:
Stock compensation awards (b)	—			—
Convertible notes	—			1.8
Convertible preferred stock:
Equivalent common shares	—			17.1
Less: share issuance limitation (c)	—			16.2
Net allowable common shares	—			0.9
Subtotal	—			2.7
Less: shares excluded in a period of a net loss	—			2.7
Weighted average effect of dilutive securities	—			—
Denominator for diluted calculation	9.0			4.9

Net (loss) per share - basic and diluted	$	(1.71	)	$	(10.37	)


(a)	In the three months ended March 31, 2014, interest expense on the former convertible notes and former convertible preferred stock dividends, net of tax, totaled $3.3 million. The tax rate is the statutory rate. However, no dilutive effect is recognized in a period in which a net loss has occurred.


(b)	Compensation awards under the 2014 Equity Incentive Plan result in common stock equivalents of less than 0.1 million shares of common stock and are excluded from the diluted calculation as a result of the net loss in the three months ended March 31, 2015.


(c)	Conversion of the convertible preferred stock of the Predecessor Company was limited based on NYSE rules requiring shareholder approval.

Options and warrants to purchase shares of common stock having an exercise price greater than the average share market price are excluded from the calculation of diluted net (loss) per share:



	Successor		Predecessor
	Three Months Ended March 31, 2015		Three Months Ended March 31, 2014
Options excluded from diluted net income per share	85,000		1,000
Warrants excluded from diluted net income per share	N/A		250,000
Exercise price of excluded options	$	5.62	$	177.50	to
			$	357.00
Exercise price of excluded warrants	N/A		$	187.50

- Definition

The entire disclosure for earnings per share.

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