Earnings (Loss) Per Share

3 Months Ended

Mar. 31, 2023

The Company calculates earnings per share under the two-class 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 March 31,

	2023		2022
	(In thousands, except per share data)

Net income (loss) from continuing operations	$	296,999	$	(19,551)
Distributed and undistributed earnings allocated to participating securities	(682)		—
Net income (loss) from continuing operations attributable to common stockholders (basic)	296,317		(19,551)
Reallocation of distributed and undistributed earnings allocated to participating securities	8		—
Net income (loss) from continuing operations attributable to common stockholders (diluted)	$	296,325	$	(19,551)

Weighted average common shares outstanding:
Basic weighted average common shares outstanding	41,568		19,306
Dilutive effect of share-based awards	902		—
Dilutive effect of warrants	679		—
Diluted weighted average common shares outstanding	43,149		19,306

Basic earnings (loss) per share from continuing operations	$	7.13	$	(1.01)
Diluted earnings (loss) per share from continuing operations	$	6.87	$	(1.01)

Anti-dilutive weighted average common shares:
Potential common shares	4,561		2,977

For the three months ended March 31, 2023, the diluted earnings per share calculation excludes the impact of unvested share-based awards and outstanding warrants that were anti-dilutive. For the three months ended March 31, 2022, the Company incurred a net loss from continuing operations, and therefore the calculation of diluted loss per share excludes the anti-dilutive effect of all potentially dilutive shares.

Basic and diluted earnings per share from discontinued operations were $25.15 for the three months ended March 31, 2022.