Earnings Per Share

9 Months Ended

Sep. 30, 2022

The Company calculates earnings per share under the two-class method. During the third quarter of 2022, the Company granted RSUs to non-employee directors which include non-forfeitable rights to dividends and are therefore considered “participating securities.” Accordingly, effective September 30, 2022, the Company has computed earnings per share under the two-class earnings allocation method. The two-class method is an earnings allocation formula that computes earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

Basic earnings per share amounts have been computed as (i) net income (loss) (ii) less distributed and undistributed earnings allocated to participating securities (iii) divided by the weighted average number of basic shares outstanding for the periods presented. Diluted earnings per share amounts have been computed as (i) basic net income attributable to common stockholders (ii) plus the reallocation of distributed and undistributed earnings allocated to participating securities (iii) divided by the weighted average number of diluted shares outstanding for the periods presented. The Company calculates diluted earnings per share under both the two-class method and treasury stock method and reports the more dilutive of the two calculations.

The following table summarizes the basic and diluted earnings per share for the periods presented:


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

	2022		2021		2022		2021
	(In thousands, except per share data)

Net income from continuing operations	$	941,609	$	41,755	$	1,052,897	$	765
Distributed and undistributed earnings allocated to participating securities	(113)		—		(47)		—
Net income from continuing operations attributable to common stockholders (basic)	941,496		41,755		1,052,850		765
Reallocation of distributed and undistributed earnings allocated to participating securities	4		—		2		—
Net income from continuing operations attributable to common stockholders (diluted)	$	941,500	$	41,755	$	1,052,852	$	765

Weighted average common shares outstanding:
Basic weighted average common shares outstanding	41,318		19,812		26,806		19,905
Dilutive effect of share-based awards	1,147		956		1,160		603
Dilutive effect of warrants	642		18		472		—
Diluted weighted average common shares outstanding	43,107		20,786		28,438		20,508

Basic earnings per share from continuing operations	$	22.79	$	2.11	$	39.28	$	0.04
Diluted earnings per share from continuing operations	$	21.84	$	2.01	$	37.02	$	0.04

Anti-dilutive weighted average common shares:
Potential common shares	4,874		2,152		2,436		2,295

For the three and nine months ended September 30, 2022 and 2021, the diluted earnings per share calculation excludes the impact of unvested share-based awards and outstanding warrants that were anti-dilutive under the treasury stock method.

Basic and diluted earnings per share from discontinued operations were calculated using the two-class method. Basic earnings (loss) per share from discontinued operations was $(1.45) and $15.88 for the three and nine months ended September 30, 2022, respectively and $1.52 and $5.07 for the three and nine months ended September 30, 2021, respectively. Diluted earnings (loss) per share from discontinued operations was $(1.39) and $14.97 for the three and nine months ended September 30, 2022, respectively, and $1.45 and $4.92 for the three and nine months ended September 30, 2021, respectively.