Earnings (loss) per share

6 Months Ended

Jun. 30, 2015

Basic earnings (loss) per share ("EPS") amounts are calculated by dividing net income (loss) allocated to common stockholders by the weighted average number of common shares outstanding. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive common shares outstanding.

Our Series A Convertible Preferred Stock has similar characteristics to a "participating security" as described by ASC 260 "Earnings Per Share" and we calculate the amount of net income (loss) allocated to common stockholders and basic EPS using the Two-Class Method earnings allocation formula, allocating undistributed income to our preferred stockholder consistent with their participation rights, and diluted EPS using the If-Converted Method when applicable.

Our Series A Convertible Preferred Stock is a non-cumulative perpetual participating convertible preferred stock with no set dividend preferences. The holders of our convertible preferred stock do not have a contractual obligation to share in our losses. In periods where we report net losses, we do not allocate these losses to the convertible preferred stock for the computation of basic or diluted EPS.

The following table shows the basic and diluted earnings (loss) per share for the three and six months ended June 30, 2015 and 2014:




	For the three months ended June 30,
	2015							2014
	Loss			Shares (000)	Per-Share			Income			Shares (000)	Per-Share
Net income (loss)	$	(33,897	)					$	20,344
Amount allocated to common stockholders (1)	100.00		%					91.80		%
Basic EPS:
Net income (loss) allocated to common stockholders	(33,897		)	86,873	$	(0.39	)	18,675			88,787	$	0.21
Effect of Dilutive Securities:
Share-based compensation plans	—			—				—			565
Diluted EPS:
Net income (loss) allocated to common stockholders with assumed conversion	$	(33,897	)	86,873	$	(0.39	)	$	18,675		89,352	$	0.21

	For the six months ended June 30,
	2015							2014
	Income			Shares (000)	Per-Share			Income			Shares (000)	Per-Share
Net income	$	39,882						$	240
Amount allocated to common stockholders	91.84		%					91.78		%
Basic EPS:
Net income allocated to common stockholders	36,628			87,838	$	0.42		220			88,752	$	0.00
Effect of Dilutive Securities:
Share-based compensation plans	—			657				—			540
Diluted EPS:
Net income allocated to common stockholders with assumed conversion	$	36,628		88,495	$	0.41		$	220		89,292	$	0.00


(1)	We have not allocated net losses between common and preferred stockholders, as the holders of our preferred shares do not have a contractual obligation to share in the loss.



Securities excluded from the calculation of diluted EPS:	Three months ended June 30,		Six months ended June 30,
	2015	2014	2015	2014

Stock options (1)	543,171	347,433	332,766	347,433
Service-based share awards (1)	691,773	—	—	—

(1)

In periods when we report a net loss, all share awards are excluded from the calculation of diluted weighted average shares outstanding because of their antidilutive effect on earnings (loss) per share. In periods when we report net income, certain option awards may be excluded from the calculation of diluted EPS if the exercise price of the option award was greater than the average market price of the underlying common stock.