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Net Income (Loss) Per Share
 9 Months Ended
Sep. 30, 2021
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share

(7) Net Income (Loss) Per Share

The Company computes net income (loss) per share of Class A and Class B common stock using the two-class method. Under the provisions of the two-class method, basic net income (loss) per share is computed by dividing net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding during the year. Diluted net income (loss) per share is computed by dividing net income (loss) applicable to common stockholders by the weighted average number of common and dilutive common equivalent shares outstanding during the period. The computation of the diluted net income (loss) per share of Class B common stock assumes the conversion of Class A common stock to Class B common stock, while the diluted net income (loss) per share of Class A common stock does not assume the conversion of those shares.

In accordance with the two-class method, the undistributed earnings (losses) for each year are allocated based on the contractual participation rights of the Class A and Class B common shares and the restricted shares as if the earnings for the year had been distributed. Considering the terms of the Company’s charter which provides that, if and when dividends are declared on the Company’s common stock in accordance with Delaware General Corporation Law, equivalent dividends shall be paid with respect to the shares of Class A common stock and Class B common stock and that both classes of common stock have identical dividend rights and would share equally in the Company’s net assets in the event of liquidation, the Company has allocated undistributed earnings (losses) on a proportionate basis.

Instruments granted in unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities prior to vesting. As such, the Company’s restricted stock awards are considered participating securities for purposes of calculating earnings per share.

The following tables present the computation of basic net loss per share applicable to common stockholders for the periods ended (in thousands, except per share amounts):

 

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2021

 

 

 

Class A

 

 

Class B

 

 

Class A

 

 

Class B

 

Basic net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss from continuing operations, net of tax

 

$

(3,571

)

 

$

(32,758

)

 

$

(250

)

 

$

(2,105

)

Discontinued operations, net of tax

 

 

323

 

 

 

2,958

 

 

 

—

 

 

 

—

 

Net loss applicable to common stockholders

 

$

(3,248

)

 

$

(29,800

)

 

$

(250

)

 

$

(2,105

)

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding used to calculate

   basic net loss per share

 

 

4,661

 

 

 

42,333

 

 

 

4,661

 

 

 

39,213

 

Basic net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations, net of tax

 

$

(0.77

)

 

$

(0.77

)

 

$

(0.05

)

 

$

(0.05

)

Discontinued operations, net of tax

 

 

0.07

 

 

 

0.07

 

 

 

—

 

 

 

—

 

Basic net loss per share applicable to common stockholders

 

$

(0.70

)

 

$

(0.70

)

 

$

(0.05

)

 

$

(0.05

)

 

 

 

 

Three Months Ended September 30,

 

 

 

2020

 

 

2021

 

 

 

Class A

 

 

Class B

 

 

Class A

 

 

Class B

 

Basic net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations, net of tax

 

$

(509

)

 

$

(4,634

)

 

$

343

 

 

$

2,967

 

Discontinued operations, net of tax

 

 

146

 

 

 

1,333

 

 

 

—

 

 

 

—

 

Net income (loss) applicable to common stockholders

 

$

(363

)

 

$

(3,301

)

 

$

343

 

 

$

2,967

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding used to calculate

   basic net income (loss) per share

 

 

4,661

 

 

 

42,470

 

 

 

4,661

 

 

 

39,246

 

Basic net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations, net of tax

 

$

(0.11

)

 

$

(0.11

)

 

$

0.07

 

 

$

0.07

 

Discontinued operations, net of tax

 

 

0.03

 

 

 

0.03

 

 

 

—

 

 

 

—

 

Basic net income (loss) per share applicable to common stockholders

 

$

(0.08

)

 

$

(0.08

)

 

$

0.07

 

 

$

0.07

 

 

The following tables present the computation of diluted net loss per share applicable to common stockholders for the periods ended (in thousands, except per share amounts):

 

 

 

Nine Months Ended September 30,

 

 

 

 

2020

 

 

2021

 

 

 

 

Class A

 

 

Class B

 

 

Class A

 

 

Class B

 

 

Diluted net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss from continuing operations, net of tax

 

$

(3,571

)

 

$

(32,758

)

 

$

(250

)

 

$

(2,105

)

 

Reallocation of net loss for Class A shares as a result of

   conversion of Class A to Class B shares

 

 

—

 

 

 

(3,571

)

 

 

—

 

 

 

(250

)

 

Diluted net loss from continuing operations, net of tax

 

$

(3,571

)

 

$

(36,329

)

 

$

(250

)

 

$

(2,355

)

 

Net income from discontinued operations, net of tax

 

$

323

 

 

$

2,958

 

 

$

-

 

 

$

-

 

 

Reallocation of discontinued operations for Class A shares

   as a result of conversion of Class A to Class B shares

 

 

—

 

 

 

323

 

 

 

—

 

 

 

—

 

 

Diluted net income from discontinued operations, net of tax

 

$

323

 

 

$

3,281

 

 

$

-

 

 

$

-

 

 

Net loss applicable to common stockholders

 

$

(3,248

)

 

$

(33,048

)

 

$

(250

)

 

$

(2,355

)

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding used to calculate

   basic net loss per share

 

 

4,661

 

 

 

42,333

 

 

 

4,661

 

 

 

39,213

 

 

Conversion of Class A to Class B common shares outstanding

 

 

—

 

 

 

4,661

 

 

 

—

 

 

 

4,661

 

 

Weighted average number of shares outstanding used to calculate

   diluted net loss per share

 

 

4,661

 

 

 

46,994

 

 

 

4,661

 

 

 

43,874

 

 

Diluted loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations, net of tax

 

$

(0.77

)

 

$

(0.77

)

 

$

(0.05

)

 

$

(0.05

)

 

Discontinued operations, net of tax

 

 

0.07

 

 

 

0.07

 

 

 

—

 

 

 

—

 

 

Diluted net loss per share applicable to common stockholders

 

$

(0.70

)

 

$

(0.70

)

 

$

(0.05

)

 

$

(0.05

)

 

 

 

 

Three Months Ended September 30,

 

 

 

2020

 

 

2021

 

 

 

Class A

 

 

Class B

 

 

Class A

 

 

Class B

 

Diluted net income (loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations, net of tax

 

$

(509

)

 

$

(4,634

)

 

$

345

 

 

$

2,965

 

Reallocation of net income (loss) for Class A shares as a result of

   conversion of Class A to Class B shares

 

 

—

 

 

 

(509

)

 

 

—

 

 

 

345

 

Diluted net income (loss) from continuing operations, net of tax

 

$

(509

)

 

$

(5,143

)

 

$

345

 

 

$

3,310

 

Net income from discontinued operations, net of tax

 

$

146

 

 

$

1,333

 

 

$

-

 

 

$

-

 

Reallocation of discontinued operations for Class A shares

   as a result of conversion of Class A to Class B shares

 

 

—

 

 

 

146

 

 

 

—

 

 

 

—

 

Diluted net income from discontinued operations, net of tax

 

$

146

 

 

$

1,479

 

 

$

-

 

 

$

-

 

Net income (loss) loss applicable to common stockholders

 

$

(363

)

 

$

(3,664

)

 

$

345

 

 

$

3,310

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding used to calculate

   basic net income (loss) per share

 

 

4,661

 

 

 

42,470

 

 

 

4,661

 

 

 

39,246

 

Weighted average stock options and common shares subject to repurchase or cancellation

 

 

—

 

 

 

—

 

 

 

—

 

 

 

478

 

Conversion of Class A to Class B common shares outstanding

 

 

—

 

 

 

4,661

 

 

 

—

 

 

 

4,661

 

Weighted average number of shares outstanding used to calculate

   diluted net income (loss) per share

 

 

4,661

 

 

 

47,131

 

 

 

4,661

 

 

 

44,385

 

Diluted income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations, net of tax

 

$

(0.11

)

 

$

(0.11

)

 

$

0.07

 

 

$

0.07

 

Discontinued operations, net of tax

 

 

0.03

 

 

 

0.03

 

 

 

—

 

 

 

—

 

Diluted net income (loss) per share applicable to common stockholders

 

$

(0.08

)

 

$

(0.08

)

 

$

0.07

 

 

$

0.07

 

 

 

For the nine months ended September 30, 2021 and 2020 and the three months ended September 30, 2020, the computation of diluted net loss per share excludes the following because their effect would be anti-dilutive (in thousands):

 

•

As of September 30, 2020 and 2021, outstanding options to acquire 4,599 and 3,531 shares, respectively of Class B common stock.

 

•

As of September 30, 2020 and 2021, 879 and 1,042 shares of unvested Class B restricted common shares, respectively.

 

•

As of September 30, 2020 and 2021, 640 and 346 restricted stock units, respectively.