Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2021

Basic earnings (loss) per share (“EPS”) is calculated by dividing net income (loss) attributable to WillScot Mobile Mini by the weighted average number of shares of Common Stock outstanding during the period. The shares of Common Stock issued as a result of the vesting of RSUs and RSAs as well as the exercise of stock options or redemption of warrants were included in EPS based on the weighted average number of days in which they were vested and outstanding during the period.

Prior to June 30, 2020, the Company had shares of Class B Common Stock which had no rights to dividends or distributions made by the Company and, in turn, were excluded from the EPS calculation. On June 30, 2020, the Sapphire Exchange was completed, and all shares of Class B Common Stock were cancelled, and Sapphire Holdings received 10,641,182 shares of Common Stock.

Diluted EPS is computed similarly to basic EPS, except that it includes the potential dilution that would occur if dilutive securities were exercised. Effects of potentially dilutive securities are presented only in periods in which they are dilutive. When liability-classified warrants are in the money and the impact of their inclusion on diluted EPS is dilutive, diluted EPS also assumes share settlement of such instruments through an adjustment to net income available to common stockholders for the fair value (gain) loss on common stock warrant liabilities and inclusion of the number of dilutive shares in the denominator.

The following table reconciles net income attributable to WillScot Mobile Mini common shareholders and the weighted average shares outstanding for the basic calculation to the weighted average shares outstanding for the diluted calculation.


	Three Months Ended				Six Months Ended
	June 30				June 30
(in thousands)	2021		2020		2021		2020
Numerator:
Net income attributable to common shareholders - basic	$	20,371	$	(15,473)	$	24,818	$	76,312
Fair value (gain) loss on common stock warrant liabilities	(610)		—		—		(70,021)
Net income (loss) attributable to common shareholders - dilutive	$	19,761	$	(15,473)	$	24,818	$	6,291

Denominator:
Weighted average Common Shares outstanding - basic	228,407		110,692		228,350		110,175
Dilutive effect of shares outstanding
Warrants	5,705		—		4,000		1,805
RSAs	20		—		36		34
Time-based RSUs	599		—		622		107
Performance-based RSUs	725		—		817		215
Stock Options	1,081		—		1,074		—

Weighted average Common Shares outstanding - dilutive	236,537		110,692		234,899		112,336

The following potential common shares were excluded from the computation of dilutive EPS because their effect would have been anti-dilutive:


	Three Months Ended		Six Months Ended
	June 30		June 30
(in thousands)	2021	2020	2021	2020
Warrants	—	18,563	—	—
RSAs	—	66	—	—
Time-based RSUs	—	901	—	—
Performance-based RSUs	—	408	—	—
Stock Options	—	534	—	534