Weighted Average Shares Outstanding and Earnings Per Share

A reconciliation of the weighted average shares outstanding used in calculating basic and diluted net income (loss) per share in the accompanying condensed consolidated statements of operations is as follows (in thousands):



	Three Months Ended June 30,		Six Months Ended June 30,
	2014	2013	2014	2013
Weighted average shares outstanding:
Weighted average common stock outstanding	39,115	38,829	39,033	38,782
Less: weighted average unvested restricted stock outstanding	—	—	—	62
Total basic weighted average shares outstanding	39,115	38,829	39,033	38,720

Diluted weighted average shares outstanding:
Weighted average common stock outstanding, basic	39,115	38,829	39,033	38,720
Effect of dilutive securities:
Common stock options and restricted stock units¹	692	940	—	—
Total weighted average shares outstanding assuming dilution	39,807	39,769	39,033	38,720

¹Due to the net loss for the six months ended June 30, 2014 and 2013, restricted stock units and common stock options representing approximately 746,000 and 851,000 shares, respectively, have been excluded from the number of shares used in calculating diluted net loss per share for the respective periods, as their inclusion would be antidilutive.

Earnings Per Share

We calculate earnings per share (“EPS”) under the two-class method by allocating earnings to both common shares and unvested restricted stock which are considered participating securities. However, net losses are not allocated to participating securities for purposes of computing EPS under the two-class method. During the three and six months ended June 30, 2014 and 2013, there were no participating securities and therefore net income was not allocated to participating securities. Following is a calculation of basic and diluted EPS (in thousands, except per share amounts):



	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013 As Revised		2014			2013 As Revised
Basic
Numerator:
Net income (loss) allocated to common shareholders for basic calculation	$	13,641	$	1,419	$	(6,913	)	$	(20,563	)

Denominator:
Weighted average common shares outstanding, basic	39,115		38,829		39,033			38,720
Net income (loss) per share, basic	$	0.35	$	0.04	$	(0.18	)	$	(0.53	)

Diluted
Numerator:
Net income (loss) allocated to common shareholders for diluted calculation	$	13,641	$	1,419	$	(6,913	)	$	(20,563	)

Denominator:
Weighted average common shares outstanding, diluted	39,807		39,769		39,033			38,720
Net income (loss) per share, diluted	$	0.34	$	0.04	$	(0.18	)	$	(0.53	)