Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2015

Basic earnings (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding combined with dilutive common share equivalents outstanding, if the effect is dilutive.

Because a net loss was realized during the year ended December 31, 2015, potentially dilutive securities were excluded from the diluted earnings per share calculation, as inclusion would have an anti-dilutive effect on net loss per share. Securities convertible into shares of common stock that were not considered in calculating earnings (loss) per common share were 777,400 stock options and 386,049 restricted stock units.

In connection with the sale of the 2008 Notes, the Company entered into a Share Lending Agreement for 3.8 million shares of the Company’s common stock (see Note 11). Contractual undertakings of the Borrower had the effect of substantially

eliminating the economic dilution that otherwise would result from the issuance of the Borrowed Shares, and all shares outstanding under the Share Lending Agreement were contractually obligated to be returned to the Company. As a result, shares loaned under the Share Lending Agreement were not considered outstanding for the purpose of computing and reporting earnings per common share. The Share Lending Agreement was terminated on January 22, 2013 upon the return of all Borrowed Shares to the Company.

On February 15, 2013, the Company repurchased the remaining $5.2 million of outstanding 2008 Notes for cash. Following this repurchase, the Company no longer has any outstanding convertible senior notes. For the year ended December 31, 2013, the Company’s convertible notes were excluded from the calculation of diluted earnings per common share as inclusion was anti-dilutive. In addition, for the year ended December 31, 2013, approximately 0.1 million stock options with an exercise price in excess of the average market price of the Company’s common stock were excluded from the calculation of diluted earnings per common share.

Basic and diluted earnings (loss) per common share are as follows (in thousands, except per share data):



	Year ended December 31,
	2015			2014		2013
Net income (loss) attributable to common stockholders	$	(13,462	)	$	53,603	$	36,178

Weighted average common shares outstanding - Basic	54,459			54,511		51,346
Assumed conversions:
Incremental common shares from warrants	—			121		1,355
Incremental common shares from stock options	—			880		1,133
Incremental common shares from restricted stock units	—			14		7
Weighted average common shares outstanding - Diluted	54,459			55,526		53,841

Basic earnings (loss) per common share	$	(0.25	)	$	0.98	$	0.70
Diluted earnings (loss) per common share	$	(0.25	)	$	0.97	$	0.67