Annual report pursuant to Section 13 and 15(d)

Net Results Per Share

v3.20.1
Net Results Per Share
 12 Months Ended
Dec. 31, 2019
Earnings Per Share [Abstract]  
Net Results Per Share
Net Results Per Share

Basic (loss) income per share (“EPS”) is computed using the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed using the weighted-average number of common shares and the dilutive effect of contingent shares outstanding during the period. Potentially dilutive contingent shares, which consist of stock options, restricted stock units (including performance stock units), liability warrants, warrants issued to third parties and accounted for as equity instruments convertible senior notes and contingently issuable shares, have been excluded from the diluted loss per share calculation when the effect of including such shares is anti-dilutive. Common stock to be issued upon the exercise of warrant instruments classified as a liability is not included in the calculation of diluted loss per share because the effect of including such shares is anti-dilutive.
The following table sets forth the computation of basic and diluted net loss per share of common stock (in thousands, except per share amounts):
 
Year Ended December 31,
 
2019
 
2018
Net income (loss) (Numerator):
 
 
 
Net loss
$
(153,443
)
 
$
(236,599
)
Net loss attributable to Global Eagle Entertainment, Inc. common stockholders for basic and diluted EPS
$
(153,443
)
 
$
(236,599
)
Net loss for dilutive EPS
$
(153,443
)
 
$
(236,599
)
Shares (Denominator):
 
 
 
Weighted average common shares outstanding - basic
3,697

 
3,653

Weighted average common shares outstanding - diluted
3,697

 
3,653

Net loss per share:
 
 
 
Basic
$
(41.50
)
 
$
(64.77
)
Diluted
$
(41.50
)
 
$
(64.77
)


The following weighted average common equivalent shares are excluded from the calculation of the Company’s net loss per share as their inclusion would have been anti-dilutive (in thousands):
 
Year Ended December 31,
 
2019
 
2018
Employee stock options
163

 
234

Restricted stock units (including performance stock units)
175

 
136

Public SPAC Warrants(1)
—

 
21

Convertible notes
178

 
178

Contingently issuable shares(2)
36

 
36

Searchlight Market Warrants(3)
397

 
397

Searchlight Penny Warrants(3)
552

 
552

(1)
These are 6,173,228 “Public SPAC Warrants”, which expired on January 31, 2018. See Note 13. Equity Transactions.
(2)
In connection with a Sound Recording Settlement, the Company is obligated to issue 20,000 shares of its common stock when and if the closing price of its common stock exceeds $250.00 per share, and 16,000 shares of its common stock when and if the closing price of its common stock exceeds $300.00 per share. See Note 11. Commitments and Contingencies.
(3)
On March 27, 2018, the Company issued $150 million in aggregate principal amount of its Second Lien Notes to Searchlight, combined with two sets of warrants to acquire the Company’s common stock . For further details, see Note 10. Financing Arrangements.