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Net Income/(Loss) Per Share Attributable To Common Stockholders
 9 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Net Income/(Loss) Per Share Attributable to Common Stockholders

5. Net Income/(Loss) Per Share Attributable to Common Stockholders

 

Basic net income/(loss) per share attributable to common stockholders is computed by dividing net income/(loss) attributable to common stockholders by the weighted-average number of common shares outstanding.

 

Diluted net income/(loss) per share attributable to common stockholders is computed by dividing net income/(loss) attributable to common stockholders by the sum of the weighted-average number of common shares and dilutive common share equivalents then outstanding using the treasury stock method. Common share equivalents consist of the incremental common shares issuable upon the exercise of stock options and the conversion of the outstanding 5.00% Series A Mandatory Convertible Preferred Stock (“MCPS”) to common shares.

 

We exclude outstanding stock options, stock awards and the MCPS from the calculations if the effect would be anti-dilutive. The dilutive effect of the MCPS is calculated using the if-converted method. The if-converted method assumes that these securities were converted to shares of common stock at the later of the September 24, 2021 issuance date or the beginning of the reporting period to the extent that the effect is dilutive. If the effect is anti-dilutive, we calculate net income/(loss) per share attributable to common stockholders by adjusting net income/(loss) in the numerator for the effect of the cumulative MCPS dividends for the respective period.

 

For the three- and nine-month periods ended December 31, 2022, the effect of assuming the conversion of the 4,600,000 shares of MCPS into shares of common stock was anti-dilutive, and therefore excluded from the calculation of diluted earnings per share attributable to common stockholders. Accordingly, net income/(loss) was reduced by cumulative MCPS dividends, as presented in our consolidated statement of operations, for purposes of calculating net income/(loss) attributable to common stockholders.

 

For the three months ended December 31, 2022, 91,816 employee stock options and 1,085 restricted shares were excluded from the calculation of diluted earnings per share attributable to common stockholders. For the nine months ended December 31, 2022, 111,446 employee stock options and 1,085 restricted shares were excluded from the calculation of diluted earnings per share attributable to common stockholders. The inclusion of these employee stock options and restricted shares would have been anti-dilutive.

 

For the three months ended January 1, 2022, all employee stock options and restricted shares were excluded from the calculation of diluted earnings per share attributable to common stockholders as the Company generated a loss for the period. For the nine months ended January 1, 2022, 164,265 employee stock options and 200 restricted shares were excluded from the calculation of diluted earnings per share attributable to common stockholders. The inclusion of these employee stock options and restricted shares would have been anti-dilutive.

 

The table below reflects the calculation of weighted-average shares outstanding for each period presented as well as the computation of basic and diluted net income/(loss) per share attributable to common stockholders.

 

   Three Months Ended   Nine Months Ended 
   December 31,
2022		   January 1,
2022		   December 31,
2022		   January 1,
2022		 
                 
Net income  $36,264   $546   $117,504   $23,232 
Preferred stock dividends   5,686    5,751    17,186    6,261 
Net income/(loss) attributable to common stockholders  $30,578   $(5,205)  $100,318   $16,971 
                     
Denominator for basic net income/(loss)  per share attributable to common stockholders — weighted-average shares outstanding   28,805,305    28,618,495    28,744,732    26,379,984 
Effect of dilution due to employee stock awards   315,013    
—
    308,876    377,827 
Denominator for diluted net income/(loss) per share attributable to common stockholders — weighted-average shares outstanding   29,120,318    28,618,495    29,053,608    26,757,811 
                     
Basic net income/(loss) per share attributable to common stockholders  $1.06   $(0.18)  $3.49   $0.64 
                     
Diluted net income/(loss) per share attributable to common stockholders  $1.05   $(0.18)  $3.45   $0.63