Earnings Per Share

6 Months Ended

Jun. 30, 2015

NOTE 8: EARNINGS PER SHARE

Prior to its IPO, the Company’s basic and diluted earnings per share (EPS) were computed using the two-class method, an earnings allocation method that determines earnings per share for common stock and participating securities. Shares of convertible preferred stock are considered participating securities and are entitled to dividend, on a pro rata basis, upon redemption, as if these had been converted to common stock. The undistributed earnings are allocated between common stock and participating securities as if all earnings had been distributed during the period.

Basic EPS is calculated by taking net income (loss), less earnings available to participating securities, divided by the basic weighted average common stock outstanding.

Diluted EPS is calculated using the more dilutive of the if-converted method and the two-class method. Because the preferred stock participates in dividends on a pro rata basis as if the shares had been converted, the diluted earnings per share are the same under both methods. The two-class method has been presented below.

The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share attributable to common stock (in thousands, except per share data):

	Three Months Ended June 30,					Six Months Ended June 30,
	2015			2014		2015		2014
Numerator (basic)
Net income (loss)	$	(1,308	)	$	6,221	$	14,503	$	7,761
Less net income allocated to participating securities		–			–		–		(2,366	)
Net income (loss) attributable to common stock	$	(1,308	)	$	6,221	$	14,503	$	5,395
Denominator (basic)
Weighted average shares of common stock outstanding		70,305			69,053		70,252		42,914
Basic EPS	$	(0.02	)	$	0.09	$	0.21	$	0.13

Numerator (diluted)
Net income (loss)	$	(1,308	)	$	6,221	$	14,503	$	7,761
Less net income allocated to participating securities		–			–		–		(2,253	)
Net income (loss) attributable to common stock	$	(1,308	)	$	6,221	$	14,503	$	5,508
Denominator (diluted)
Weighted average shares of common stock		70,305			69,053		70,252		42,914
Dilutive effect of stock options and restricted stock units		–			3,605		2,839		3,114
Weighted average shares of common stock outstanding		70,305			72,659		73,091		46,028
Diluted EPS	$	(0.02	)	$	0.09	$	0.20	$	0.12
Common stock equivalents excluded from income (loss) per diluted share because of their anti-dilutive effect		3,589			143		850		827