EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2024

The Company’s Series A Preferred Stock is classified as a participating security in accordance with ASC 260. Net income allocated to the holders of Series A Preferred Stock is based on the Series A stockholders’ proportionate share of weighted average shares of common stock outstanding on an if-converted basis. The Series A Preferred Stock is not contractually obligated to share in losses.

For purposes of determining diluted earnings per common share, basic earnings per common share was adjusted to include the effect of potentially dilutive common shares outstanding. These potentially 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 Preferred Stock is included using the if-converted method.

Under the two-class method, net income is reallocated to common stock, the Series A Preferred Stock, and all potentially 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,
	2024		2023		2024		2023
Numerator:
Net income	$	6,356	$	83,949	$	163,950	$	176,685
Dividends on Series A convertible preferred stock	(6,913)		(6,875)		(20,588)		(20,512)
Income allocated to participating preferred stock	—		(6,702)		(12,357)		(13,605)
Net (loss) income attributable to common stockholders	$	(557)	$	70,372	$	131,005	$	142,568

Effect of dilutive securities:
Allocation of earnings to participating securities	$	—	$	6,702	$	12,357	$	13,605
Reallocation of earnings to participating securities	—		(6,540)		(12,154)		(13,263)
Net (loss) income available to common stockholders after assumed conversions	$	(557)	$	70,534	$	131,208	$	142,910

Denominator:
Weighted average basic common shares outstanding	233,696		231,006		233,219		230,523
Dilutive effect of common shares	—		6,267		4,261		6,363
Weighted average diluted common shares outstanding	233,696		237,273		237,480		236,886

(Loss) earnings per share:
Basic	$	(0.00)	$	0.30	$	0.56	$	0.62
Dilutive	$	(0.00)	$	0.30	$	0.55	$	0.60

(1) Forward Stock Split - The share numbers have been retrospectively adjusted to reflect the three-for-one stock split that became effective on November 13, 2023. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies for more information.

For the three months ended September 30, 2024 and September 30, 2023, 27.1 million and 21.9 million potentially dilutive securities, respectively, were excluded from the computation of diluted earnings per share related to common stockholders, as their effect was antidilutive.

For the nine months ended September 30, 2024 and September 30, 2023, 22.0 million and 21.9 million potentially dilutive securities, respectively, were excluded from the computation of diluted earnings per share related to common stockholders, as their effect was antidilutive.