Earnings per Share

9 Months Ended

Sep. 30, 2020

Earnings (Loss) per Share

Basic and diluted earnings (loss) per share are computed pursuant to the two-class method. Under this method, the Company attributes net income (loss) to two classes: common stock and unvested restricted stock. Unvested restricted stock awards granted to employees under the Company’s Long-Term Incentive Plan are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock.

Diluted net income per share is calculated using the more dilutive of the two methods. Under both methods, the exercise of employee stock options is assumed using the treasury stock method. The assumption of vesting of restricted stock, however, differs:

1.Assume vesting of restricted stock using the treasury stock method.

2.Assume unvested restricted stock awards are not vested, and allocate earnings to common shares and unvested restricted stock awards using the two-class method.

For the three and nine months ended September 30, 2019, the second method, which assumes unvested awards are not vested, was used in the computation because it was more dilutive than the first method.

The following table sets forth the computation of net income (loss) per share, on a basic and diluted basis, for the periods indicated (share count and dollar amounts other than per-share amounts in the table are in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Basic:
Net income (loss)	$	(29,143)	$	43,929	$	(155,255)	$	171,596
Less income allocated to participating securities	—		(578)		(236)		(2,441)
Net income (loss) attributable to common stock	$	(29,143)	$	43,351	$	(155,491)	$	169,155
Earnings (loss) per share, basic	$	(1.82)	$	2.70	$	(9.75)	$	10.55
Weighted-average shares outstanding	16,006		16,037		15,953		16,037
Diluted:
Net income (loss)	$	(29,143)	$	43,929	$	(155,255)	$	171,596
Less income allocated to participating securities	—		(578)		(236)		(2,440)
Net income (loss) attributable to common stock	$	(29,143)	$	43,351	$	(155,491)	$	169,156
Earnings (loss) per share, diluted	$	(1.82)	$	2.70	$	(9.75)	$	10.54
Weighted-average shares outstanding(1)	16,006		16,037		15,953		16,037

(1) Dilutive effect of common stock equivalents excluded from the diluted per share calculation is not material.