Earnings Per Share

We calculate basic earnings (loss) per share by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during each period. Common shares issuable upon the satisfaction of certain conditions pursuant to a contractual agreement, such as those shares expected to be issued under the Plan, are considered common shares outstanding and are included in the computation of net income (loss) per share. The Plan required that we reserve 7,080,000 shares of our common stock to settle claims of unsecured creditors. These shares were previously included in the 40 million shares of common stock contemplated by the Plan, without regard to actual issuance dates. As a result, prior to final issuance of these shares, the computation of net income (loss) per share included the 7,080,000 reserved shares. At the end of February 2019, we finalized settlement of these claims and issued approximately 2,770,000 shares. In all prior periods presented we retrospectively adjusted the weighted average shares in our earnings per share calculations for the ultimate shares issued, instead of the 7,080,000 shares that had been reserved.

The Series A Preferred Stock was not a participating security, therefore, we calculated diluted EPS using the “if-converted" method under which the preferred dividends are added back to the numerator and the convertible preferred stock is assumed to be converted at the beginning of the period. No incremental shares of Series A Preferred Stock were included in the diluted EPS calculation for the three months ended March 31, 2019, as all outstanding shares of our Series A Preferred Stock were converted to common shares in connection with the IPO of our common stock in July 2018. No Series A Preferred Stock were included in the diluted EPS calculation for the three months ended March 31, 2018 as their affect was anti-dilutive under the "if converted" method. The RSUs are not a participating security as the dividends are forfeitable. No incremental RSU shares were included in the diluted EPS calculation for the three months ended March 31, 2019 as their effect was anti-dilutive under the "if converted" method. Incremental RSU shares of 225,000 were included in the diluted EPS calculation for the three months ended March 31, 2018, as their effect was dilutive under the "if-converted" method. No PSU's were included in the EPS calculations for any of the periods presented due to their contingent nature.



	Three Months Ended March 31,
	2019			2018
	(in thousands except per share amounts)
Basic EPS calculation
Net income (loss)	$	(34,098	)	$	6,410
less: Series A Preferred Stock dividends and conversion to common stock	—			(5,650		)
Net income (loss) attributable to common stockholders	$	(34,098	)	$	760
Weighted-average shares of common stock outstanding	81,765			38,602
Basic earnings (loss) per share⁽²⁾	$	(0.42	)	$	0.02
Diluted EPS calculation
Net income (loss)	$	(34,098	)	$	6,410
less: Series A Preferred Stock dividends and conversion to common stock	—			(5,650		)
Net income (loss) attributable to common stockholders	$	(34,098	)	$	760
Weighted-average shares of common stock outstanding	81,765			38,602
Dilutive effect of potentially dilutive securities⁽¹⁾	—			225
Weighted-average common shares outstanding - diluted	81,765			38,827
Diluted earnings (loss) per share⁽²⁾	$	(0.42	)	$	0.02

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(1)	No potentially dilutive securities were included in computing earnings (loss) per share for the three months ended March 31, 2019, because the effect of inclusion would have been anti-dilutive.


(2)	Per share amounts are stated net of tax.