14.

Earnings Per Share

Basic net income (loss) per share attributable to Skyline Champion was computed using the two-class method by dividing net income (loss) attributable to Skyline Champion, after deducting undistributed earnings allocated to participating securities, by the average number of common shares outstanding during the period. The Company’s time-vesting and performance-vesting restricted shares are considered participating securities. Diluted earnings per common share is computed based on the more dilutive of; (i) the two-class method, assuming the participating securities are not exercised or converted; or (ii) the summation of average common shares outstanding and additional common shares that would have been outstanding if the dilutive potential common shares had been issued. During the three months ended June 30, 2018 and July 1, 2017, diluted earnings per share was more dilutive under the two-class method. Securities that could potentially dilute basic EPS in the future that were antidilutive are described Note 13. The number of shares used to calculate earnings per share prior to the Exchange was determined based on the exchange ratio, as defined in the Exchange.

The following table sets forth the computation of basic and diluted earnings per common share:


	Three Months Ended
(Dollars in thousands, except share and per share data)	June 30, 2018			July 1, 2017
Numerator:
Net (loss) income:	$	(853	)	$	5,263
Less: Undistributed earnings allocated to participating securities		—			(355	)

Net (loss) income attributable to Skyline Champion common shareholders	$	(853	)	$	4,908

Denominator:
Average common shares outstanding		47,462			44,424

Basic net (loss) income per share	$	(0.02	)	$	0.11

Diluted net (loss) income per share	$	(0.02	)	$	0.11