Net Income Per Share

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2015 is not comparative to the corresponding periods 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.



	Three Months Ended June 30,						Six Months Ended June 30,
	Successor			Predecessor			Successor			Predecessor
(in millions, except per share amounts)	2015			2014			2015			2014

Numerators for basic and diluted calculations (a):
Net (loss)	$	(15.1	)	$	(28.0	)	$	(30.5	)	$	(78.8	)

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

Weighted average effect of dilutive securities:
Stock compensation awards (b)	—			—			—			—
Convertible notes	—			1.8			—			1.8
Convertible preferred stock:
Equivalent common shares	—			28.6			—			22.9
Less: share issuance limitation (c)	—			27.7			—			22.0
Net allowable common shares	—			0.9			—			0.9
Subtotal	—			2.7			—			2.7
Less: shares excluded in a period of a net loss	—			2.7			—			2.7
Weighted average effect of dilutive securities	—			—			—			—
Denominator for diluted calculation	9.0			4.9			9.0			4.9

Net (loss) per share - basic and diluted	$	(1.68	)	$	(5.71	)	$	(3.39	)	$	(16.08	)


(a)	Interest expense on the former convertible notes, net of tax, was $3.0 million in the three months ended June 30, 2014 and $6.0 million in the six months ended June 30, 2014. 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 resulted 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 net losses in the three and six months ended June 30, 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:



	Three Months Ended June 30,					Six Months Ended June 30,
	Successor		Predecessor			Successor		Predecessor
	2015		2014			2015		2014
Options excluded from diluted net income per share	75,000		200			75,000		200
Warrants excluded from diluted net income per share	N/A		250,000			N/A		250,000
Exercise price of excluded options	$	5.62	$	283.25	to	$	5.62	$	283.25	to
			$	357.00				$	357.00
Exercise price of excluded warrants	N/A		$	187.50		N/A		$	187.50