Earnings (Loss) Per Share

In periods in which the company has net income, the company is required to calculate earnings (loss) per share ("EPS") using the two-class method. The two-class method is required because the company's preferred stock is considered a participating security with objectively determinable and non-discretionary dividend participation rights. Preferred stockholders have the right to participate in dividends above their five percent dividend rate should the company declare dividends on its Common Stock at a dividend rate higher than the five percent (on an as-converted basis). Under the two-class method, undistributed and distributed earnings are allocated on a pro-rata basis to the common and the preferred stockholders. The weighted-average number of common and preferred stock outstanding during the period is then used to calculate EPS for each class of shares.

In periods in which the company has a net loss, basic loss per share is calculated using the treasury stock method. The treasury stock method is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period. The two-class method is not used, because the two-class calculation is anti-dilutive.

Reconciliations of basic and diluted EPS are as follows:



	Year Ended December 31,
In thousands, except per share amounts	2018			2017
Numerator:
Net income (loss)	$	17,550		$	(41,860	)
Less: Preferred stock dividend	457			—
Less: Earnings attributable to participating securities	2,202			—
Numerator for basic EPS: income/(loss) attributable to common stockholders	14,891			$	(41,860	)

Effect of dilutive securities:
Add back: Allocation of earnings to participating securities	2,202			—
Less: Re-allocation of earnings to participating securities considering potentially dilutive securities	(2,191		)	—
Numerator for diluted EPS	$	14,902		$	(41,860	)

Denominator:
Basic EPS denominator: weighted-average common shares outstanding	6,237			6,192

Effect of dilutive securities:
Unvested shares	33			—
Diluted EPS denominator	6,270			6,192

Basic earnings (loss) per common share	$	2.39		$	(6.76	)
Diluted earnings (loss) per common share	$	2.38		$	(6.76	)

For the purpose of calculating the shares used in the diluted EPS calculations, 0.2 million and 0.3 million anti-dilutive options have been excluded from the EPS calculations for the years ended December 31, 2018 and 2017. 0.1 million and 0.1 million anti-dilutive unvested shares were excluded from the calculation of shares used in the diluted EPS calculation for the years ended December 31, 2018 and 2017, respectively.