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Earnings Per Common Share
9 Months Ended
Sep. 30, 2018
Earnings Per Share [Abstract]  
Earnings Per Common Share

7. Earnings Per Common Share

The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “Earnings Per Share,” using the two-class method because the Company’s unvested restricted stock is a participating security since these awards contain non-forfeitable rights to receive dividends. Under the two-class method, earnings are allocated to each class of common stock and participating security as if all of the earnings for the period had been distributed.

Basic earnings per common share excludes dilution and is calculated by dividing earnings to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing earnings to common shares by the weighted-average number of common shares, as adjusted for the potentially dilutive effect of stock options.

The following table reconciles earnings (loss) per common share for the three and nine months ended September 30, 2018 and 2017:

 

 

 

Three

 

 

Three

 

 

Nine

 

 

Nine

 

 

 

Months

 

 

Months

 

 

Months

 

 

Months

 

 

 

Ended

 

 

Ended

 

 

Ended

 

 

Ended

 

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Basic Earnings (Loss) per Common Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(8,342

)

 

$

(4,240

)

 

$

(24,492

)

 

$

(17,401

)

Distributed earnings to common shares

 

 

 

 

 

 

 

 

 

 

 

 

Distributed earnings to participating securities

 

 

 

 

 

 

 

 

 

 

 

 

Total distributed earnings

 

 

 

 

 

 

 

 

 

 

 

 

Undistributed loss allocable to common shares

 

 

(8,342

)

 

 

(4,240

)

 

 

(24,492

)

 

 

(17,401

)

Undistributed earnings allocable to participating securities

 

 

 

 

 

 

 

 

 

 

 

 

Total undistributed loss

 

 

(8,342

)

 

 

(4,240

)

 

 

(24,492

)

 

 

(17,401

)

Loss to common shares — basic

 

$

(8,342

)

 

$

(4,240

)

 

$

(24,492

)

 

$

(17,401

)

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding — basic

 

 

11,394

 

 

 

10,797

 

 

 

11,333

 

 

 

10,410

 

Basic earnings (loss) per common share

 

$

(0.73

)

 

$

(0.39

)

 

$

(2.16

)

 

$

(1.67

)

 

 

 

Three

 

 

Three

 

 

Nine

 

 

Nine

 

 

 

Months

 

 

Months

 

 

Months

 

 

Months

 

 

 

Ended

 

 

Ended

 

 

Ended

 

 

Ended

 

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Diluted Earnings (Loss) per Common Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss to common shares — basic

 

$

(8,342

)

 

$

(4,240

)

 

$

(24,492

)

 

$

(17,401

)

Undistributed earnings allocated to participating securities

 

 

 

 

 

 

 

 

 

 

 

 

Undistributed earnings reallocated to participating securities

 

 

 

 

 

 

 

 

 

 

 

 

Loss to common shares — diluted

 

$

(8,342

)

 

$

(4,240

)

 

$

(24,492

)

 

$

(17,401

)

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding — basic

 

 

11,394

 

 

 

10,797

 

 

 

11,333

 

 

 

10,410

 

Dilutive effect of stock options

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding — diluted

 

 

11,394

 

 

 

10,797

 

 

 

11,333

 

 

 

10,410

 

Diluted earnings (loss) per common share

 

$

(0.73

)

 

$

(0.39

)

 

$

(2.16

)

 

$

(1.67

)

 

There were 375 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for each of the three and nine months ended September 30, 2018, because their exercise prices were higher than the average market price of the underlying common stock for the periods.

There were 0 and 275 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share for the three and nine months ended September 30, 2017, respectively, because their exercise prices were higher than the average market price of the underlying common stock for the periods.

There were no common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for each of the three and nine months ended September 30, 2018, because the Company incurred a net loss for the periods.

There were 71 and 107 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for the three and nine months ended September 30, 2017, respectively, because the Company incurred a net loss for the periods.