NET INCOME (LOSS) PER COMMON SHARE

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

NET INCOME (LOSS) PER COMMON SHARE

NOTE 3 — NET INCOME (LOSS) PER COMMON SHARE

Basic net income (loss) per common share is computed by dividing net income, after deducting dividends paid or accrued on preferred stock and allocating earnings to equity awards deemed to be participating securities pursuant to the two-class method, by the average number of shares of common stock outstanding, calculated excluding unvested stock awards.  Participating securities include unvested equity awards that contain non-forfeitable rights to dividends prior to vesting.

Diluted net income (loss) per common share is computed by dividing the numerator used to compute basic net income (loss) per common share by the denominator used to compute basic net income (loss) per common share, further adjusted for the dilutive effect, if any, of equity awards and shares of preferred stock when and if convertible into shares of common stock.  Shares of the Company’s 7.50% Series E Cumulative Redeemable Preferred Stock are contingently convertible into shares of common stock only upon the occurrence of a change in control and therefore are not considered dilutive securities absent such an occurrence.  Any unvested equity awards that are deemed participating securities are included in the calculation of diluted net income (loss) per common share, if dilutive, under either the two-class method or the treasury stock method, depending upon which method produces the more dilutive result.

Components of the computation of basic and diluted net income (loss) per common share were as follows for the indicated periods (dollars in thousands, except per share amounts):

	Quarter Ended
	March 31
	2021			2020
Basic net income (loss) per common share
Numerator for basic net income (loss) per common share:
Net income (loss)	$	18,942		$	(204,653	)
Preferred stock dividends		(4,842	)		(4,842	)
Earnings participation of unvested equity awards		(36	)		(32	)
	$	14,064		$	(209,527	)
Denominator for basic net income (loss) per common share:
Average number of shares of common stock outstanding		96,793			95,636
Average unvested stock awards outstanding		(899	)		(739	)
		95,894			94,897
	$	0.15		$	(2.21	)
Diluted net income (loss) per common share
Numerator for diluted net income (loss) per common share	$	14,064		$	(209,527	)
Denominator for diluted net income (loss) per common share:
Denominator for basic net income (loss) per common share		95,894			94,897
Net effect of dilutive equity awards		336			–
		96,230			94,897
	$	0.15		$	(2.21	)

Anti-dilutive securities that could be potentially dilutive in the future that were not included in the computation of diluted net income (loss) per common share include 80,000 equity awards excludable under the treasury stock method for the quarter ended March 31, 2021. There were 920,000 potentially dilutive securities excluded from the computation of diluted net income (loss) per common share for the quarter ended March 31, 2020.