Earnings Per Share

In periods in which the company has net income, the company is required to calculate earnings 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 calculation would be anti-dilutive.

Reconciliations of basic and diluted EPS were as follows:



	Three Months Ended June 30,
In thousands, except per share amounts	2019			2018
Net loss	$	(3,803	)	$	(6,734	)
Less: Preferred stock dividends	124			124
Loss attributable to common stockholders	$	(3,927	)	$	(6,858	)

Basic loss per Common Share
Weighted-average common shares outstanding	6,272			6,226
Basic loss per common share	$	(0.63	)	$	(1.10	)

Diluted Loss per Common Share
Weighted-average shares used to compute earnings/(loss) per share attributable to common shares	6,272			6,226
Diluted Loss per common share	$	(0.63	)	$	(1.10	)

Computation of Shares Used in Diluted Loss Per Common Share
Weighted-average common shares outstanding	6,272			6,226
Shares used in diluted loss per common share computations	6,272			6,226

0.1 million and 0.3 million shares of anti-dilutive market price options have been excluded from the calculation of shares used in the diluted EPS calculation for the three months ended June 30, 2019 and 2018, respectively. 0.2 million and 0.2 million of anti-dilutive unvested shares were excluded from the calculation of shares used in the diluted EPS calculation for the three months ended June 30, 2019 and 2018, respectively. 1.0 million shares of anti-dilutive preferred stock (as if converted) have been excluded from the calculation of shares used in the diluted EPS calculation for the three months ended June 30, 2019.



	Six Months Ended June 30,
In thousands, except per share amounts	2019			2018
Numerator:
Net (loss) income	$	(17,330	)	$	25,893
Less: Preferred stock dividend	246			207
Less: Earnings attributable to participating securities	—			3,059
Numerator for basic EPS: (loss) income attributable to common stockholders	$	(17,576	)	$	22,627

Effect of dilutive securities:
Add back: Allocation of earnings to participating securities	—			3,059
Less: Re-allocation of earnings to participating securities considering potentially dilutive securities	—			(3,046		)
Numerator for diluted EPS	$	(17,576	)	$	22,640

Denominator:
Basic EPS denominator: weighted-average common shares outstanding	6,270			6,220

Effect of dilutive securities:
Unvested shares	—			30
Diluted EPS denominator	6,270			6,250

Basic (loss) earnings per common share	$	(2.80	)	$	3.64
Diluted (loss) earnings per common share	$	(2.80	)	$	3.62

0.3 million and 0.3 million of anti-dilutive market price options have been excluded from the calculation of shares used in the diluted EPS calculation for the six months ended June 30, 2019 and 2018, respectively. 0.2 million and 32,000 anti-dilutive unvested shares were excluded from the calculation of shares used in the diluted EPS calculation for the six months ended June 30, 2019 and 2018, respectively.