Earnings per Share

9 Months Ended

Dec. 31, 2023

12. Earnings per Share

Shares of the Company’s Class B common stock do not share in the earnings or losses attributable to HLI, and, therefore, are not participating securities. As a result, a separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been included. Shares of the Company’s Class B common stock are, however, considered potentially dilutive to the Class A common stock because the Class B units to which the Class B common stock corresponds are exchangeable for shares of Class A common stock on a one-for-one basis, at which time the share of Class B common stock is surrendered in exchange for a payment of its par value.

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock:


	Three Months Ended December 31, 2023					Three Months Ended December 31, 2022
	Net income attributable to Class A Stockholders		Weighted-Average Shares	Per share amount		Net income attributable to Class A Stockholders		Weighted-Average Shares	Per share amount
Net income attributable to HLI	$	19,506				$	9,669
Impact of changes in carrying amount of redeemable NCI	—					2,095
Basic EPS of Class A common stock	$	19,506	37,736,012	$	0.52	$	11,764	37,025,416	$	0.32
Adjustment to net income:
Assumed vesting of employee awards	25					5
Assumed conversion of Class B and Class C Units	8,232					5,058
Effect of dilutive securities:
Assumed vesting of employee awards			162,446					68,129
Assumed conversion of Class B and Class C Units			16,089,097					16,675,834
Diluted EPS of Class A common stock	$	27,763	53,987,555	$	0.51	$	16,827	53,769,379	$	0.31


	Nine Months Ended December 31, 2023					Nine Months Ended December 31, 2022
	Net income attributable to Class A Stockholders		Weighted-Average Shares	Per share amount		Net income attributable to Class A Stockholders		Weighted-Average Shares	Per share amount
Net income attributable to HLI	$	92,498				$	78,034
Impact of changes in carrying amount of redeemable NCI	—					3,809
Basic EPS of Class A common stock	$	92,498	37,720,724	$	2.45	$	81,843	37,004,657	$	2.21
Adjustment to net income:
Assumed vesting of employee awards	88					34
Assumed conversion of Class B and Class C Units	38,456					35,968
Effect of dilutive securities:
Assumed vesting of employee awards			122,983					53,030
Assumed conversion of Class B and Class C Units			16,089,097					16,675,834
Diluted EPS of Class A common stock	$	131,042	53,932,804	$	2.43	$	117,845	53,733,521	$	2.19

The adjustments to net income for dilutive securities are based upon the additional income that would be allocated to HLI for the change in its ownership percentage due to the dilutive securities and adjusted for the incremental income tax expense related to the additional allocated income. Net income (loss) recorded by HLI on a standalone basis will determine if the Class B and Class C units are dilutive or antidilutive in each respective period.

The calculation of diluted earnings per share excludes 502,336 and 509,641 weighted-average shares underlying performance awards for the three and nine months ended December 31, 2023, respectively, as the market condition was not achieved as of December 31, 2023.