EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2020

We calculate basic and diluted earnings per share by applying the two-class method because we have participating securities in the form of Class A preferred shares. Participating securities are allocated a proportional share of net income determined by dividing total weighted average participating securities by the sum of total weighted average common shares and participating securities. We also apply the treasury stock method with respect to certain share-based awards in the calculation of diluted earnings per share, if dilutive.

The calculation of earnings per share attributable to Civeo common shareholders is presented below for the periods indicated (in thousands, except per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Numerator:
Net income (loss) attributable to Civeo common shareholders	$	6,517	$	4,532	$	(133,885)	$	(28,276)
Less: income allocated to participating securities	(944)		(653)		—		—
Basic net income (loss) attributable to Civeo Corporation common shareholders	$	5,573	$	3,879	$	(133,885)	$	(28,276)
Add: undistributed income attributable to participating securities	944		653		—		—
Less: undistributed income reallocated to participating securities	(942)		(651)		—		—
Diluted net income (loss) attributable to Civeo Corporation common shareholders	$	5,575	$	3,881	$	(133,885)	$	(28,276)

Denominator:
Weighted average shares outstanding - basic	169,924		167,640		169,420		166,842
Dilutive shares - share-based awards	620		642		—		—
Weighted average shares outstanding - diluted	170,544		168,282		169,420		166,842

Basic net income (loss) per share attributable to Civeo Corporation common shareholders (1)	$	0.03	$	0.02	$	(0.79)	$	(0.17)

Diluted net income (loss) per share attributable to Civeo Corporation common shareholders (1)	$	0.03	$	0.02	$	(0.79)	$	(0.17)

(1)Computations may reflect rounding adjustments.

For the three months ended September 30, 2020 and 2019, we excluded 2.4 million and 4.5 million share-based awards, respectively, from the computation of diluted earnings per share because their effect was anti-dilutive. When an entity has a net loss from continuing operations, it is prohibited from including potential common shares in the computation of diluted per share amounts. For the nine months ended September 30, 2020 and 2019, we excluded from the computation of diluted loss per share 4.9 million and 6.9 million share-based awards, respectively, since the effect would have been anti-dilutive. Additionally, for the three and nine months ended September 30, 2020 and 2019, we excluded from the computation the impact of converting the Preferred Shares into 28.8 million and 28.2 million common shares, respectively, since the effect would have been anti-dilutive.