Earnings/(Loss) Per Share

9 Months Ended

Sep. 30, 2023

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, 2023, 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. For the three and nine months ended September 30, 2023, the Company did not exclude any potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. 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. The Company excluded 965,788 and 976,509 shares related to restricted stock units for which the performance metric had yet to be achieved as of September 30, 2023 and 2022, 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,

	2023		2022		2023		2022
	(in thousands, except share and per share)
Basic earnings/(loss) per share:
Numerator
Net income/(loss)	$	132,450	$	110,381	$	393,571	$	(242,334)
Preferred stock dividends	(10,425)		(10,425)		(31,275)		(31,275)
Net income/(loss) attributable to common stockholders	$	122,025	$	99,956	$	362,296	$	(273,609)
Denominator
Weighted-average shares outstanding	111,027,252		110,892,097		110,997,619		111,874,002
Basic earnings/(loss) per share	$	1.10	$	0.90	$	3.26	$	(2.45)
Diluted earnings/(loss) per share:
Numerator
Net income/(loss)	$	132,450	$	110,381	$	393,571	$	(242,334)
Preferred stock dividends	(10,425)		(10,425)		(31,275)		(31,275)
Net income/(loss) attributable to common stockholders	$	122,025	$	99,956	$	362,296	$	(273,609)
Denominator
Number of shares used in basic computation	111,027,252		110,892,097		110,997,619		111,874,002
Weighted-average effect of dilutive securities	319,547		198,036		385,638		—
Number of shares used in per share computation	111,346,799		111,090,133		111,383,257		111,874,002
Diluted earnings/(loss) per share	$	1.10	$	0.90	$	3.25	$	(2.45)