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Earnings per Share

6 Months Ended

Dec. 31, 2023

Earnings per Share

Earnings per Share

8. Earnings per Share

As further described in Note 14 “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, 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 153 thousand shares were contingently issuable by Adtalem under the ASR agreement and were included in the diluted earnings per share calculation for the six months ended December 31, 2022 because the effect would have been dilutive. As of October 14, 2022, the ASR agreement is no longer outstanding. Diluted earnings per share was computed using the treasury stock method for stock awards. 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						Six Months Ended
		December 31,						December 31,
		2023			2022			2023			2022
Numerator:
Net income (loss):
Continuing operations		$	37,713		$	24,126		$	49,672		$	29,639
Discontinued operations			2,178			527			865			(4,394)
Net income		$	39,891		$	24,653		$	50,537		$	25,245

Denominator:
Weighted-average basic shares outstanding			39,872			45,425			40,636			45,350
Effect of dilutive stock awards			915			696			850			729
Effect of ASR			—			—			—			153
Weighted-average diluted shares outstanding			40,787			46,121			41,486			46,232

Earnings (loss) per share:
Basic:
Continuing operations		$	0.95		$	0.53		$	1.22		$	0.65
Discontinued operations		$	0.05		$	0.01		$	0.02		$	(0.10)
Total basic earnings per share		$	1.00		$	0.54		$	1.24		$	0.56
Diluted:
Continuing operations		$	0.92		$	0.52		$	1.20		$	0.64
Discontinued operations		$	0.05		$	0.01		$	0.02		$	(0.10)
Total diluted earnings per share		$	0.98		$	0.53		$	1.22		$	0.55

Weighted-average antidilutive shares			89			365			210			421