EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2023

Basic earnings per common share is computed by dividing income or loss attributable to common stockholders by the weighted average number of shares of basic common stock outstanding. The Company’s Series A Convertible Preferred Stock is classified as a participating security in accordance with ASC 260. Net income allocated to the holders of Series A Convertible Preferred Stock is based on the Series A stockholders’ proportionate share of weighted average shares of common stock outstanding on an if-converted basis.

For purposes of determining diluted earnings per common share, basic earnings per common share was adjusted to include the effect of potential dilutive common shares outstanding. These potential dilutive shares include unvested restricted stock and performance-based stock units. The more dilutive of the two-class method or the treasury stock method is used for this adjustment. Additionally, Series A Convertible Preferred Stock is included using the if-converted method.

Under the two-class method, net income is reallocated to common stock, the Series A Convertible Preferred Stock, and all dilutive securities based on the contractual participating rights of the respective securities to share in the current earnings as if all of the earnings for the period had been distributed.


	For The Three Months Ended September 30,				For The Nine Months Ended September 30,
	2023		2022		2023		2022
Numerator:
Net income (loss)	$	83,949	$	(181,896)	$	176,685	$	(166,059)
Less: dividends paid to Series A convertible preferred stockholders	(6,875)		(4,596)		(20,512)		(4,596)
Undistributed income (loss)	77,074		(186,492)		156,173		(170,655)
Income allocated to participating preferred shares	(6,540)		—		(13,263)		—
Net income (loss) attributable to common stockholders	$	70,534	$	(186,492)	$	142,910	$	(170,655)

Denominator:
Weighted average basic common shares outstanding	77,002		75,796		76,841		75,625
Dilutive effect of common shares	2,089		—		2,121		—
Weighted average diluted common shares outstanding	79,091		75,796		78,962		75,625

Earnings per share:
Basic	$	0.92	$	(2.46)	$	1.86	$	(2.26)
Dilutive	$	0.89	$	(2.46)	$	1.81	$	(2.26)

For both the three and nine months ended September 30, 2023, 7.3 million potentially dilutive securities were excluded from the computation of diluted earnings per share related to common stockholders, as their effect was antidilutive.