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Earnings per Share

9 Months Ended

Mar. 31, 2023

Earnings per Share

Earnings per Share

8. Earnings per Share

As a result of incurring a net loss from continuing operations for the nine months ended March 31, 2022, potential common stock of 413 thousand shares were excluded from diluted loss per share because the effect would have been antidilutive. As further described in Note 15 “Share Repurchases,” on March 14, 2022, we entered into an accelerated share repurchase (“ASR”) agreement to repurchase $150.0 million of common stock. For purposes of calculating earnings per share for the periods presented, Adtalem reflected the ASR agreement as a repurchase of Adtalem common stock and as a forward contract indexed to its own common stock. Based on the volume-weighted average price of Adtalem’s common stock per the terms of the ASR agreement, common stock of 102 thousand shares were contingently issuable by Adtalem under the ASR agreement and were included in the diluted earnings per share calculation for the nine months ended March 31, 2023 because the effect would have been dilutive. As of March 31, 2023, the ASR agreement is no longer outstanding. Certain shares related to stock awards were excluded from the computation of earnings per share because the effect would have been antidilutive. The following table sets forth the computations of basic and diluted earnings per share and antidilutive shares (in thousands, except per share data):


		Three Months Ended						Nine Months Ended
		March 31,						March 31,
		2023			2022			2023			2022
Numerator:
Net income (loss):
Continuing operations		$	48,563		$	4,400		$	78,202		$	(37,092)
Discontinued operations			(2,694)			343,340			(7,088)			341,337
Net income		$	45,869		$	347,740		$	71,114		$	304,245

Denominator:
Weighted-average basic shares outstanding			45,125			48,925			45,276			49,459
Effect of dilutive stock awards			676			452			711			—
Effect of ASR			—			—			102			—
Weighted-average diluted shares outstanding			45,801			49,377			46,089			49,459

Earnings (loss) per share:
Basic:
Continuing operations		$	1.08		$	0.09		$	1.73		$	(0.75)
Discontinued operations		$	(0.06)		$	7.02		$	(0.16)		$	6.90
Total basic earnings per share		$	1.02		$	7.11		$	1.57		$	6.15
Diluted:
Continuing operations		$	1.06		$	0.09		$	1.70		$	(0.75)
Discontinued operations		$	(0.06)		$	6.95		$	(0.15)		$	6.90
Total diluted earnings per share		$	1.00		$	7.04		$	1.54		$	6.15

Weighted-average antidilutive shares			429			2,074			424			2,187