Note 4 — Earnings per Share

The Company computes basic net income (loss) per share using the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed using the weighted average number of shares of common stock and, if dilutive, potential shares of common stock outstanding during the period. Potentially dilutive shares consist of the incremental shares issuable under the outstanding warrants, which entitle the holder to purchase one share of the Company’s common stock at a price of $13.00 per share and expire on September 25, 2014, and incremental shares issuable under the Company’s 2009 Performance Incentive Plan (the “Incentive Plan”). The treasury stock method is used to measure the dilutive impact of potentially dilutive shares.

The following table details the potential weighted average dilutive and anti-dilutive securities for the periods presented (in thousands):

 

		Twelve Months Ended December 31,
		2013				2012				2011
Potential dilutive warrants			—				—				32,523
Potential dilutive restricted stock			2,529				1,464				1,296
Anti-dilutive securities			35,569				37,779				10,757

 

The following table sets forth the 2013, 2012 and 2011 computation of basic and diluted net income (loss) per share of common stock for the periods presented (in thousands, except per share amounts):

 

		2013				2012				2011
Net income (loss)		$	(113,806	)		$	17,976			$	30,485
Basic weighted average common shares outstanding			68,260				59,424				57,612
Add: dilutive effect of non-vested restricted stock			—				28				1,169
Add: dilutive effect of outstanding warrants			—				—				6,248
Diluted weighted average common shares outstanding			68,260				59,452				65,029
Basic earnings (loss) per common share		$	(1.67	)		$	0.30			$	0.53
Diluted earnings (loss) per common share		$	(1.67	)		$	0.30			$	0.47

A summary of the activity associated with warrants during 2013, 2012 and 2011 is as follows (in thousands):

 

		Warrants
Balance at December 31, 2011			42,676
Retirement of public warrants			(9,635	)
Balance at December 31, 2012 and 2013			33,041

Subsequent to December 31, 2013, and through February 28, 2014, no warrants have been exercised.