Earnings per share

12 Months Ended

Dec. 31, 2015

4. Earnings per share

The Company computes earnings (loss) per share by applying the guidance stated in ASC 260, Earnings per Share. The treasury stock method has been used to compute earnings (loss) per share. The Company has issued warrants (“Private Placement Warrants”) that represent the right to purchase shares of the Company’s common stock, stock appreciation rights (“SAR”), and restricted stock, all of which have been evaluated for their potentially dilutive effect under the treasury stock method. Refer to Note 11, “Stockholders’ equity” for a further description of the Private Placement Warrants and Note 10, “2012 Incentive compensation plan” for a further description of the SAR and restricted stock.

The computations of basic and diluted earnings (loss) per share as of December 31, 2015, 2014 and 2013, were as follows:


	2015			2014			2013
Numerator:
Net income (loss)	$	14,278		$	23,726		$	(18,760	)
Change in the value of Private Placement Warrants		(9,299	)		(6,169	)		—

	$	4,979		$	17,557		$	(18,760	)

Denominator:
Weighted average common shares outstanding-basic		10,808,005			10,706,780			9,779,457
Incremental shares from assumed exercise of Private Placement Warrants, SAR, restricted stock		265,642			424,837			—

Weighted average common shares outstanding-diluted		11,073,647			11,131,617			9,779,457

Earnings (loss) per share of common stock — basic and diluted:
Earnings (loss) per share of common stock — basic	$	1.32		$	2.22		$	(1.92	)

Earnings (loss) per share of common stock — diluted	$	0.45		$	1.58		$	(1.92	)

As of December 31, 2015, SARs were excluded from the diluted EPS calculation because they have an anti-dilutive effect under the treasury stock method. As of December 31, 2013, due to the loss reported in the consolidated statements of operating results, any potentially issuable shares of Company common stock associated with the Private Placement Warrants, SAR and restricted stock granted were not included in the dilutive EPS calculation. These potential shares were excluded from the diluted EPS calculation because they have an anti-dilutive effect under the treasury stock method.