Earnings (Loss) Per Share

As discussed in Note 2, "Emergence from Chapter 11", on the Effective Date, the old common stock awards and warrants then outstanding under the Company’s prior equity compensation plans were extinguished without recovery.

The Company calculates basic earnings (loss) per share by dividing net income (loss) by the weighted average number of common shares outstanding, excluding restricted shares. The Company calculates diluted earnings (loss) per share by dividing net income (loss) by the weighted average number of common shares outstanding plus the dilutive effect of outstanding share-based awards, including stock options and restricted stock awards. Warrants are included in basic and diluted shares outstanding because there is little or no consideration paid upon exercise of the Warrants. Antidilutive instruments are not considered in this calculation. The Company applies the two-class method to calculate earnings per share. Because both classes share the same rights in dividends and earnings, earnings per share (basic and diluted) are the same for both classes.

The following table presents the reconciliation of basic to diluted weighted average common shares from diluted weighted average common shares (in thousands):



	Successor Company		Predecessor Company
	Three Months Ended September 30, 2018		Three Months Ended September 30, 2017
Basic Earnings Per Share
Numerator:
Undistributed net income from operations	$	12,713	$	1,274
Less:
Participation rights of certain warrants in undistributed earnings	—		1
Basic net income attributable to common shares	$	12,713	$	1,273
Denominator:
Basic weighted average shares outstanding	20,005		$	29,306
Basic undistributed net income per share attributable to common shares	$	0.64	$	0.04

Diluted Earnings Per Share
Numerator:
Undistributed net income from operations	$	12,713	$	1,274
Less:
Participation rights of certain warrants in undistributed earnings	—		1
Diluted net income attributable to common shares	$	12,713	$	1,273
Denominator:
Basic weighted average shares outstanding	20,005		29,306
Effect of dilutive options and restricted share units	65		—
Diluted weighted average shares outstanding	20,070		29,306
Diluted undistributed net income per share attributable to common shares	$	0.63	$	0.04



	Successor Company		Predecessor Company
	Period from June 4, 2018 through September 30, 2018		Period from January 1, 2018 through June 3, 2018		Nine Months Ended September 30, 2017
Basic Earnings (Loss) Per Share
Numerator:
Undistributed net income (loss) from operations	$	17,693	$	696,156	$	(449	)
Basic net income (loss) attributable to common shares	$	17,693	$	696,156	$	(449	)
Denominator:
Basic weighted average shares outstanding	20,009		29,338		$	29,306
Basic undistributed net income (loss) per share attributable to common shares	$	0.88	$	23.73	$	(0.02	)

Diluted Earnings (Loss) Per Share
Numerator:
Undistributed net income (loss) from operations	$	17,693	$	696,156	$	(449	)
Diluted net income (loss) attributable to common shares	$	17,693	$	696,156	$	(449	)
Denominator:
Basic weighted average shares outstanding	20,009		29,338		29,306
Effect of dilutive options and restricted share units	42		—		—
Diluted weighted average shares outstanding	20,051		29,338		29,306
Diluted undistributed net income (loss) per share attributable to common shares	$	0.88	$	23.73	$	(0.02	)