21. Basic and Diluted Income (Loss) Per Common Share

Earnings per share ("EPS") is calculated using the two-class method, which allocates earnings among common stock and participating securities to calculate EPS when an entity's capital structure includes either two or more classes of common stock or common stock and participating securities. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities. As such, shares of any unvested restricted stock of the Company are considered participating securities. The dilutive effect of options and their equivalents (including non-vested stock issued under stock-based compensation plans), is computed using the "treasury" method as this measurement was determined to be more dilutive between the two available methods in each period.

The following potential common shares were excluded from diluted EPS for the three and nine months ended September 30, 2018 as the shares were antidilutive: 2,019,972 for outstanding warrants to purchase the Company's stock and 4,787,602 for convertible preferred stock.

The Company had no dilutive common share equivalents during the three and nine months ended September 30, 2017, due to the results of operations being a loss from continuing operations, net of tax.

The following table presents a reconciliation of net income (loss) used in basic and diluted EPS calculations (in thousands, except per share amounts):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Net income (loss) attributable to common stock and participating preferred stockholders	$	152,763		$	(6,670	)	$	171,727		$	(40,453	)
Earnings allocable to common shares:
Numerator for basic and diluted earnings per share
Participating shares at end of period:
Weighted-average common stock outstanding	44,326			43,013			44,175			42,555
Unvested restricted stock	384			—			350			—
Preferred stock (as-converted basis)	4,787			—			4,787			—
Total	49,497			43,013			49,312			42,555

Percentage of loss allocated to:
Common stock	89.6		%	100.0		%	89.6		%	100.0		%
Unvested restricted stock	0.8		%	—		%	0.7		%	—		%
Preferred stock	9.7		%	—		%	9.7		%	—		%

Net Income (loss) attributable to common stock, basic	$	136,804		$	(6,670	)	$	153,838		$	(40,453	)

Distributed and Undistributed earnings to Common Shareholders:
Effect of assumed shares under treasury stock method for stock options and restricted shares	$	397		$	—		$	378		$	—
Income from the dilutive impact of subsidiary securities	—			—			—			—
Net Income (loss) attributable to common stock, diluted	$	137,201		$	(6,670	)	$	154,216		$	(40,453	)

Denominator for basic and dilutive earnings per share
Weighted average common shares outstanding - basic	44,326			43,013			44,175			42,555
Effect of assumed shares under treasury stock method for stock options and restricted shares	1,891			—			1,400			—
Weighted average common shares outstanding - diluted	46,217			43,013			45,575			42,555

Net income (loss) attributable to participating security holders - basic	$	3.09		$	(0.16	)	$	3.48		$	(0.95	)
Net income (loss) attributable to participating security holders - diluted	$	2.97		$	(0.16	)	$	3.38		$	(0.95	)