Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2020

14. Earnings (Loss) Per Share

We use the two-class method to calculate earnings per share as the unvested restricted stock awards outstanding under our equity incentive plan are participating shares with nonforfeitable rights to dividends. Under the two-class method, we compute earnings per share of Common Stock by dividing the sum of distributed earnings to common stockholders (currently not applicable as we do not pay dividends) and undistributed earnings allocated to common stockholders by the weighted average number of outstanding shares of Common Stock for the period. In applying the two-class method, we allocate undistributed earnings to both shares of Common Stock and participating securities based on the number of weighted average shares outstanding during the period. Any undistributed losses are not allocated to unvested restricted stock as the restricted stockholders are not obligated to share in the losses. Following is a reconciliation of the numerator and denominator of basic and diluted earnings (loss) per share for the three and six months ended June 30, 2020 and 2019:

(In thousands except per share data)	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Numerator:
Net income (loss)	$	28,511		$	18,137		$	(169,595	)	$	22,351
Net income allocated to unvested restricted stock		(20	)		(93	)		—			(77	)
Net income (loss) allocated to shares of Common Stock	$	28,491		$	18,044		$	(169,595	)	$	22,274

Denominator:
Shares used for basic income (loss) per share		48,711			47,790			48,662			45,165
Effect of dilutive stock options and restricted stock units outstanding:
Non-qualified stock options		8			93			—			110
Restricted stock units		75			578			—			444
Shares used for diluted income (loss) per share ⁽¹⁾		48,794			48,461			48,662			45,719

Earnings (loss) per share:
Basic	$	0.59		$	0.38		$	(3.49	)	$	0.49
Diluted ⁽¹⁾	$	0.58		$	0.37		$	(3.49	)	$	0.49

Dilutive securities outstanding not included in the computation of earnings per share because their effect is anti-dilutive:
Non-qualified stock options		235			71			202			76
Restricted stock units		750			288			544			172
Restricted stock awards		32			128			35			64
Performance-based stock units		95			—			64			—
Market-based stock units		49			—			25			—

(1)

The impact of potentially dilutive securities for the six months ended June 30, 2020 was not considered because the impact would be anti-dilutive.

Market stock units and performance stock units outstanding are considered contingently issuable shares, and certain of these stock units were excluded from the calculations of diluted earnings per share for all periods presented as the performance criteria had not been met as of the end of the reporting periods.