NET INCOME LOSS PER SHARE

3 Months Ended

Mar. 31, 2022

Earnings Per Share, Policy [Policy Text Block]

14. NET INCOME PER SHARE

Our Series A-1 preferred stock and Series B preferred stock (collectively, the "preferred shares") are considered participating securities, and as a result, net income per share is calculated using the two-class method. Under this method, we give effect to preferred dividends and then allocate remaining net income attributable to our stockholders to both common shares and participating securities (based on the percentages outstanding) in determining net income per common share.

Basic net income per common share is computed by dividing net income attributable to common shares (after allocating between common shares and participating securities) by the weighted average number of common shares outstanding during the period.

Diluted net income per share is computed by dividing net income attributable to common shares (after allocating between participating securities and common shares) by the weighted average number of common and potential common shares outstanding during the period (after allocating total dilutive shares between our common shares outstanding and our preferred shares outstanding). Potential common shares, comprising incremental common shares issuable from the employee stock purchase plan and restricted stock awards are included in the calculation of diluted net income per common share to the extent such shares are dilutive.

The following table sets forth the computation of basic and diluted net income per common share for the periods indicated (in thousands, except per share data):


	Three months ended March 31,
	2022		2021
Numerator:
Income from continuing operations	$	10,123	$	26,018

Less: Preferred stock dividends—declared and accumulated	182		182
Undistributed income from continuing operations	9,941		25,836
Less: Undistributed income allocated to participating securities	952		1,529
Net income from continuing operations attributable to common stockholders	$	8,989	$	24,307

Loss from discontinued operations	$	—	$	(9,925)


Net income attributable to common stockholders	$	8,989	$	14,382

Denominator:
Weighted average shares of common stock outstanding—basic	43,052		42,885
Effect of dilutive securities:
Restricted stock awards	230		435
Weighted average shares of common stock outstanding—diluted	43,282		43,320

Net income from continuing operations per share of common stock:
Basic	$	0.21	$	0.57
Diluted	$	0.21	$	0.56
Net loss from discontinued operations per share of common stock:
Basic	$	—	$	(0.23)
Diluted	$	—	$	(0.23)
Net income per share of common stock:
Basic	$	0.21	$	0.34
Diluted	$	0.21	$	0.33

The following shares were excluded from the calculation of diluted shares outstanding as their effect would have been anti-dilutive (in thousands):


	Three months ended March 31,
	2022	2021
Restricted stock units	506	284
Employee stock purchase plan	64	—