Loss per Share |
11. Earnings per Share
Basic income (loss) per common share is determined by dividing income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration of common stock equivalents. Diluted income (loss) per share is computed by dividing the income (loss) attributable to common stockholders by the weighted-average number of common share equivalents outstanding for the period. The treasury stock method is used to determine the dilutive effect of the Company's stock option grants, SAR, potential Employee Stock Purchase Plan (ESPP) awards and warrants, and the if-converted method (which reflects a calculated loss on debt extinguishment of $5.7 million as shown in the following table) is used to determine the dilutive effect of the Company's Notes and Series A Preferred Stock. The following common stock equivalents were excluded in the calculation of diluted loss per share because their effect would be anti-dilutive as applied to the loss from continuing operations applicable to common stockholders for the years ended December 31, 2014, 2013 and 2012:
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|
Year Ended December 31,
|
|
|
|
2014
|
|
2013
|
|
2012
|
|
Shares underlying Convertible Senior Secured Notes
|
|
|
—
|
|
|
6,219,782
|
|
|
—
|
|
Series A Preferred Stock
|
|
|
—
|
|
|
—
|
|
|
4,049,863
|
|
Warrants to purchase Series A Preferred Stock/common stock
|
|
|
—
|
|
|
13,388
|
|
|
21,090
|
|
Stock options, stock appreciation rights, and non-vested stock options
|
|
|
—
|
|
|
151,737
|
|
|
256,939
|
|
The following table sets forth the computation of basic and diluted net income per share for the year ended December 31, 2014, in thousands, except share and per share amounts:
|
|
Year ended December 31,
|
|
|
|
2014
|
|
2013
|
|
2012
|
|
Numerator, in thousands:
|
|
|
|
|
|
|
|
|
|
|
Net income used for calculation of basic EPS
|
|
$
|
19,871
|
|
$
|
(92,273
|
)
|
$
|
(47,427
|
)
|
Interest expense on convertible debt
|
|
|
4,963
|
|
|
—
|
|
|
—
|
|
Changes in fair value of derivative liabilities
|
|
|
(2,809
|
)
|
|
—
|
|
|
—
|
|
Loss on extinguishment of outstanding debt
|
|
|
2,592
|
|
|
—
|
|
|
—
|
|
Loss on extinguishment of outstanding debt, as if converted
|
|
|
(8,315
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Total adjustments
|
|
|
(3,569
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income used for calculation of diluted EPS
|
|
$
|
16,302
|
|
$
|
(92,273
|
)
|
$
|
(47,427
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding, basic
|
|
|
42,260,896
|
|
|
31,848,299
|
|
|
17,440,910
|
|
Effect of dilutive potential common shares:
|
|
|
|
|
|
—
|
|
|
—
|
|
Shares underlying Convertible Senior Secured Notes
|
|
|
7,090,722
|
|
|
|
|
|
|
|
Shares issuable to settle interest make-whole derivatives
|
|
|
904,618
|
|
|
—
|
|
|
—
|
|
Warrants to purchase common stock
|
|
|
20,499
|
|
|
—
|
|
|
—
|
|
Stock options, stock appreciation rights, and non-vested stock options
|
|
|
306,776
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Total potential dilutive common shares
|
|
|
8,322,615
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding, diluted
|
|
|
50,583,511
|
|
|
31,848,299
|
|
|
17,440,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share, basic
|
|
$
|
0.47
|
|
$
|
(2.90
|
)
|
$
|
(2.72
|
)
|
Net income per share, diluted
|
|
$
|
0.32
|
|
$
|
(2.90
|
)
|
$
|
(2.72
|
)
|
|