Income (Loss) per Share

9 Months Ended

Sep. 30, 2016

Note 14—Income (Loss) per Share

Basic income (loss) per share is computed by dividing net income (loss) by the sum of the weighted-average number of common shares outstanding and the weighted-average number of shares issuable under the common stock warrants, representing 352 thousand shares during each of the three and nine months ended September 30, 2016 and 587 thousand shares and 693 thousand shares during the three and nine months ended September 30, 2015, respectively. The common stock warrants are included in the calculation of basic income (loss) per share because they are issuable for minimal consideration. The following table sets forth the computation of basic and diluted income (loss) per share (in thousands, except per share amounts):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2016			2015		2016			2015
Net income (loss)	$	(27,761	)	$	14,740	$	(59,522	)	$	26,925
Undistributed income allocated to participating securities (2)	—			228		—			217
Net income (loss) attributable to common stockholders	$	(27,761	)	$	14,512	$	(59,522	)	$	26,708

Basic weighted-average common stock shares outstanding	41,580			37,390		41,309			37,304
Add: dilutive effects of common stock equivalents (1)	—			10		—			27
Diluted weighted-average common stock shares outstanding	41,580			37,400		41,309			37,331

Basic income (loss) per common share	$	(0.67	)	$	0.39	$	(1.44	)	$	0.72
Diluted income (loss) per common share	$	(0.67	)	$	0.39	$	(1.44	)	$	0.72

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(1)	Entities with a net loss from continuing operations are prohibited from including potential common shares in the computation of diluted per share amounts. We have utilized the basic shares outstanding to calculate both basic and diluted loss per share for the three and nine months ended September 30, 2016.


(2)	Participating securities includes restricted stock that has been issued but has not yet vested.

For the three and nine months ended September 30, 2016, our calculation of dilutive shares outstanding excluded 463 thousand and 448 thousand shares of unvested restricted stock, 1.7 million stock options and 6.4 million and 2.3 million outstanding common stock equivalents assuming our 5.00% Convertible Senior Notes had been converted on the date of issuance, respectively. For the three and nine months ended September 30, 2015, our weighted-average potentially dilutive securities excluded from the calculation of diluted shares outstanding consisted of 587 thousand and 303 thousand shares of unvested restricted stock and 10 thousand and 27 thousand common stock equivalents related to stock options, respectively.

As discussed in Note 9—Debt, we have the option of settling the 5.00% Convertible Senior Notes in cash or shares of common stock, or any combination thereof, upon conversion. We have a net loss for the period; therefore, there is no impact for the conversion of the 5.00% Convertible Senior Notes on diluted EPS as the effect would be anti-dilutive; however, had we reported net income for the three or nine months ended September 30, 2016, diluted EPS would have been determined using the if-converted method.