Earnings (Loss) Per Share

3 Months Ended

Mar. 31, 2023

Basic earnings (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding during the period. Weighted-average shares outstanding used in our computation of diluted EPS is calculated using the treasury stock method and includes the effect of all potentially dilutive stock equivalents, including warrants, restricted stock unit awards and performance stock unit awards.

The following table is a reconciliation of the weighted-average shares used in our basic and diluted EPS computations for the three months ended March 31, 2023 and 2022 (in millions):


	Three Months Ended March 31,
	2023		2022
Income (loss) from continuing operations attributable to our shares	$	46.7	$	(38.6)
Weighted average shares outstanding:
Basic	75.2		75.0

Effect of stock equivalents	1.2		—


Diluted	76.4		75.0

Anti-dilutive share awards totaling 8,000 were excluded from the computation of diluted EPS for the three months ended March 31, 2023.

Anti-dilutive share awards totaling 1.0 million were excluded from the computation of diluted EPS for the three months ended March 31, 2022. Due to the net loss position, our potentially dilutive share awards were not included in the computation of diluted EPS as the effect these shares would have been anti-dilutive.

We had 5,470,950 warrants outstanding (the "Warrants") as of March 31, 2023 to purchase common shares of Valaris Limited (the "Common Shares") which are exercisable for one Common Share per Warrant at an initial exercise price of $131.88 per Warrant and expire on April 29, 2028. The exercise of these Warrants into Common Shares would have a dilutive effect to the holdings of Valaris Limited's existing shareholders. These warrants are anti-dilutive for all periods presented.