Earnings (Loss) per Share

6 Months Ended

Jun. 30, 2022

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 months ended June 30, 2022, the second method was used because it was more dilutive than the first method. For the six months ended June 30, 2022, basic and diluted (loss) per share are the same because of the (loss) position.

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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Basic:
Net income (loss)	$	4,358	$	95,027	$	(3,523)	$	101,896
Less income allocated to participating securities	(39)		(1,285)		—		(1,451)
Net income (loss) attributable to common stock	$	4,319	$	93,742	$	(3,523)	$	100,445
Earnings (loss) per share, basic	$	0.24	$	5.49	$	(0.20)	$	6.04
Weighted-average shares outstanding	17,987		17,064		17,970		16,618
Diluted:
Net income (loss)	$	4,358	$	95,027	$	(3,523)	$	101,896
Less income allocated to participating securities	(39)		(1,284)		—		(1,449)
Net income (loss) attributable to common stock	$	4,319	$	93,743	$	(3,523)	$	100,447
Earnings (loss) per share, diluted	$	0.24	$	5.49	$	(0.20)	$	6.04
Weighted-average shares outstanding	17,987		17,064		17,970		16,618
Dilutive effect of stock options and restricted stock	31		123		—		128
Adjusted weighted-average shares outstanding under treasury stock method	18,018		17,187		17,970		16,746
Participating securities excluded under two-class method	(12)		(114)		—		(114)
Adjusted weighted-average shares outstanding under two-class method	18,006		17,073		17,970		16,632