EARNINGS (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2022

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE

3.  EARNINGS (LOSS) PER SHARE

Basic and diluted earnings (loss) per common share (“EPS”) are computed using the two-class method, which is an earnings allocation method that determines EPS for each class of common stock and participating securities considering dividends declared and participation rights in undistributed earnings.  Common stock related to certain of the Company’s restricted stock awards are considered participating securities because holders are entitled to receive non-forfeitable dividends, if declared, during the vesting term.  

The potentially dilutive impact of the Company’s restricted stock awards is determined using the treasury stock method.  Under the treasury stock method, if the average market price during the period exceeds the exercise price, these instruments are treated as if they had been exercised with the proceeds of exercise used to repurchase common stock at the average market price during the period.  Any incremental difference between the assumed number of shares issued and repurchased is included in the diluted share computation.

Diluted EPS includes securities that could potentially dilute basic EPS during a reporting period.  Dilutive securities are not included in the computation of loss per share when a company reports a net loss from continuing operations as the impact would be anti-dilutive.

The computation of basic and diluted EPS attributable to common shareholders computed using the two-class method is as follows:

	Quarter Ended
	March 31,
(In thousands, except per share amounts)	2022		2021
Net loss	$	(115,549)	$	(62,083)
Less: dividends on Series A preferred stock		9,598		—
Less: net income attributable to noncontrolling interest		115		16
Loss attributable to common shareholders before allocation of earnings to participating securities		(125,262)		(62,099)
Less: earnings allocated to participating securities		—		—
Net loss attributable to common shareholders, after earnings allocated to participating securities	$	(125,262)	$	(62,099)
Weighted-average number of common shares outstanding		111,691		78,029
Net loss per common share attributable to common shareholders - basic and diluted	$	(1.12)	$	(0.80)

Diluted EPS attributable to common shareholders for the quarter ended March 31, 2022 excludes 2.4 million potential common shares related to our share-based compensation plan because the inclusion of the potential common shares would have an antidilutive effect.  Diluted EPS attributable to common shareholders for the quarter ended March 31, 2021 excludes 19.4 million potential common shares that could be issued under our share-based compensation plan and the contingent payment right (“CPR”) issued to Searchlight on October 2, 2020, as described in Note 4.