18. BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE

Basic income (loss) per common share is calculated by dividing income (loss) attributable to common shareholders by the weighted average common shares outstanding during the period. Diluted income per common share adjusts basic income per common share for the effects of potentially dilutive common share equivalents.

The Company had dilutive common share equivalents during the three months ended June 30, 2013, due to the results of operations being income from continuing operations, net of tax. For the three months ended June 30, 2013, the following were dilutive and were included in the calculation of diluted income per common share due to their dilutive effect:

Three Months Ended June 30, 2013

•

0.2 million shares issuable upon exercise of stock options and RSUs;

•

0.3 million shares issuable upon exercise of Warrants

For the six months ended June 30, 2013, the Company had no dilutive common share equivalents due to results of operations being a loss from continuing operations, net of tax. The amounts above were excluded from the calculation of diluted loss per common share due to their antidilutive effect.

The Company had no dilutive common share equivalents during the three and six months ended June 30, 2014 due to the results of operations being a loss from continuing operations, net of tax. For the three and six months ended June 30, 2014, the following were potentially dilutive but were excluded from the calculation of diluted loss per common share due to their antidilutive effect:

Three and Six Months Ended June 30, 2014

•

1.7 million shares issuable upon exercise of stock options and RSUs; and

•

15.0 million shares issuable upon exercise of Warrants.

A calculation of basic income (loss) per common share to diluted income (loss) per common share is set forth below (in thousands, except per share amounts):


	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.	$	(3,788	)	$	2,920		$	(7,968	)	$	(2,671	)
Income (loss) from discontinued operations		27			(607	)		44			1,772
Gain (loss) from sale of discontinued operations		—			135,045			(784	)		135,045

Net income (loss) – basic	$	(3,761	)	$	137,358		$	(8,708	)	$	134,146

Net income (loss) – diluted	$	(3,761	)	$	137,358		$	(8,708	)	$	134,146

Weighted average common shares outstanding – basic		16,905			13,972			15,780			13,941

Weighted average common shares outstanding – diluted		16,905			14,436			15,780			13,941

Basic income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.	$	(0.22	)	$	0.21		$	(0.50	)	$	(0.19	)
Income (loss) from discontinued operations		—			(0.04	)		—			0.12
Gain (loss) from sale of discontinued operations		—			9.66			(0.05	)		9.69

Net income (loss) attributable to HC2 Holdings, Inc.	$	(0.22	)	$	9.83		$	(0.55	)	$	9.62

Diluted income (loss) per common share:
Income (loss) from continuing operations attributable to HC2 Holdings, Inc.	$	(0.22	)	$	0.20		$	(0.50	)	$	(0.19	)
Income (loss) from discontinued operations		—			(0.04	)		—			0.12
Gain (loss) from sale of discontinued operations		—			9.35			(0.05	)		9.69

Net income (loss) attributable to HC2 Holdings, Inc.	$	(0.22	)	$	9.51		$	(0.55	)	$	9.62