Earnings/(Loss) Per Share

9 Months Ended

Sep. 30, 2022

Basic earnings/(loss) per share is computed by dividing net income/(loss) by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock; however, potential common equivalent shares are excluded if the effect of including these shares would be anti-dilutive. The Company’s two classes of common stock, Class A and Class B non-voting, have equal rights to dividends and income, and therefore, basic and diluted earnings per share are the same for each class of common stock. As of September 30, 2022, the Company did not have any Class B non-voting common stock outstanding.

Diluted earnings per share takes into account the potential conversion of stock options, restricted stock units, and warrants using the treasury stock method and convertible notes using the if-converted method. Since the Company was in a loss position for the nine months ended September 30, 2022, diluted net loss per share is the same as basic net loss per share for the period as the inclusion of all potential common shares outstanding would have been anti-dilutive. For the nine months ended September 30, 2022, the Company excluded 329,947 potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. For the three months ended September 30, 2022, the Company did not exclude any potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. For the three and nine months ended September 30, 2021, the Company did not exclude any potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. The Company excluded 976,509 and 1,083,635 shares related to restricted stock units for which the performance metric had yet to be achieved as of September 30, 2022 and 2021, respectively.

The following table sets forth the reconciliation of basic and diluted earnings/(loss) per share:


	Three Months Ended September 30,				Nine Months Ended September 30,

	2022		2021		2022		2021
	(in thousands, except share and per share)
Basic earnings/(loss) per share:
Numerator
Net income/(loss)	$	110,381	$	107,337	$	(242,334)	$	284,851
Preferred stock dividends	(10,425)		(7,331)		(31,275)		(19,010)
Net income/(loss) attributable to common stockholders	$	99,956	$	100,006	$	(273,609)	$	265,841
Denominator
Weighted-average shares outstanding	110,892,097		114,122,512		111,874,002		114,071,951
Basic earnings/(loss) per share	$	0.90	$	0.88	$	(2.45)	$	2.33
Diluted earnings/(loss) per share:
Numerator
Net income/(loss)	$	110,381	$	107,337	$	(242,334)	$	284,851
Preferred stock dividends	(10,425)		(7,331)		(31,275)		(19,010)
Net income/(loss) attributable to common stockholders	$	99,956	$	100,006	$	(273,609)	$	265,841
Denominator
Number of shares used in basic computation	110,892,097		114,122,512		111,874,002		114,071,951
Weighted-average effect of dilutive securities	198,036		259,109		—		343,218
Number of shares used in per share computation	111,090,133		114,381,621		111,874,002		114,415,169
Diluted earnings/(loss) per share	$	0.90	$	0.87	$	(2.45)	$	2.32