EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2020

Basic earnings per share (“EPS”) is computed by dividing net income applicable to common stockholders for the period by the weighted-average number of shares of common stock outstanding during the same period. The Company’s Series A Preferred Stock shares are considered participating securities, as these securities have non-forfeitable rights to participating dividends (as defined in the Investment Agreement) if and to the extent that the Company pays any participating dividends, and thus require the two-class method of computing EPS. Under the two-class method, all earnings (distributed and undistributed) are allocated between the common shares and the participating securities. For the three and nine months ended September 30, 2020, there were no undistributed earnings allocated to the participating securities.

Diluted EPS is similarly computed, but includes the weighted-average dilutive effect, if any, of all outstanding potentially dilutive securities. Diluted EPS is calculated under the treasury stock method for equity awards issued under the Company’s stock compensation plans, and under both the two-class and if-converted methods for the Series A Preferred Stock, with the more dilutive amount reported. Potentially dilutive securities having an anti-dilutive effect are excluded from the calculation.

The following table sets forth the computation of basic and diluted EPS for the periods presented (in millions):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Numerator:
Net earnings	$	7.0	$	17.5	$	8.3	$	57.1
Less: Preferred stock dividends	(1.4)		—		(1.4)		—
Net earnings available to common stockholders (Basic and Diluted)	$	5.6	$	17.5	$	6.9	$	57.1

Denominator: (shares in thousands)
Denominator for basic EPS - weighted-average shares	49,112		48,873		49,057		48,835

Potentially dilutive shares resulting from stock plans (1)	329		701		428		525
Denominator for diluted EPS - weighted-average shares	49,441		49,574		49,485		49,360

Net earnings per share:
Basic	$	0.11	$	0.36	$	0.14	$	1.17
Diluted	$	0.11	$	0.35	$	0.14	$	1.16

(1) For the three months and nine months ended September 30, 2020, approximately 8.0 million and 2.9 million, respectively, of potentially dilutive securities, including common shares issuable upon assumed conversion of the Series A Preferred Stock, and outstanding equity awards granted under stock compensation plans, had the effect of being anti-dilutive and were excluded from the computation of diluted EPS. Of these aggregate exclusions, 0.4 million in both periods represents options to purchase common stock and unvested shares of restricted stock or restricted stock units, while the remaining balance represents common shares issuable upon the assumed conversion of the Series A Preferred Stock.