9. Earnings (Loss) Per Share

We compute earnings (loss) per share using the two-class method. The two-class method requires an earnings allocation formula that determines earnings per share for common stockholders and participating security holders according to dividends declared and participating rights in undistributed earnings. The Series B Preferred stock and time-based restricted stock awards are participating securities because holders of such shares have non-forfeitable dividend rights and participate in undistributed earnings within common stock. Under the two-class method, total dividends accorded to the Series B Preferred stockholders and restricted stockholders, including common dividends and undistributed earnings allocated to participating securities are subtracted from net (loss) income attributable to the Company in determining net (loss) income attributable to common stockholders. Additionally, any accretion to redemption value is treated as a deemed dividend in the two-class EPS calculation.

The calculations of basic and diluted (loss) earnings per common share are as follows (in thousands, except per-share data):


	Three Months Ended
	March 31,		April 1,
	2019		2018

Basic (loss) earnings per common share:
Net (loss) income attributable to the Company	$	(1,731)	$	17,443
Preferred stock dividends		(2,070)		—
Net income (loss) attributable to participating securities		—		(75)
Net (loss) income attributable to common shareholders	$	(3,801)	$	17,368

Weighted average common shares outstanding		31,554		33,279
Basic (loss) earnings per common share	$	(0.12)	$	0.52

Diluted (loss) earnings per common share:
Net (loss) income attributable to common shareholders	$	(3,801)	$	17,368

Weighted average common shares outstanding		31,554		33,279
Dilutive effect of outstanding equity awards (a)		—		273
Diluted weighted average common shares outstanding (b)		31,554		33,552
Diluted (loss) earnings per common share	$	(0.12)	$	0.52

(a)

Excludes 790 equity awards for the three months ended April 1, 2018 as the effect of including such awards would have been anti-dilutive.

(b)

In connection with the issuance of the Series B Preferred Stock as described in Note 8, the Company had 252,530 convertible preferred shares outstanding as of March 31, 2019. For the fully diluted calculation, the Series B Preferred stock dividends were added back to net (loss) income attributable to common stockholders. The Company then applied the if-converted method to calculate dilution on the Series B Preferred Stock, which resulted in 5.0 million additional common shares. This calculation was anti-dilutive.