EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2022

Earnings per basic and diluted share are calculated under the treasury stock method. Basic net income per common share is calculated by dividing net income by the basic weighted-average common shares outstanding for the respective period. Diluted net income per common share is calculated by dividing net income by the diluted weighted-average common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities consist of unvested RSUs, DSUs, PSUs as well as outstanding in-the-money stock options and warrants. When the Company recognizes a loss from continuing operations, all potentially dilutive shares are anti-dilutive and are consequently excluded from the calculation of diluted earnings per share.

The Company issues RSUs and DSUs, which represent the right to receive, upon vesting, one share of the Company's common stock. The number of potentially dilutive shares related to unvested RSUs and DSUs is based on the number of shares, if any, that would be issuable at the end of the respective reporting period, assuming that date was the end of the vesting period. The Company issues PSUs, which represent the right to receive, upon settlement of the PSUs, a number of shares of the Company's common stock that ranges from zero to two times the number of PSUs granted on the award date. The number of potentially dilutive shares related to PSUs is based on the number of shares, if any, that would be issuable at the end of the respective reporting period, assuming that date was the end of the performance period applicable to such PSUs. The Company has also issued stock options and warrants, which both represent the right to purchase the Company's common stock at a specified exercise price. The number of potentially dilutive shares related to the stock options and warrants is based on the number of shares, if any, that would be exercisable at the end of the respective reporting period, assuming the date was the end of such stock options' or warrants' term. Stock options and warrants are only dilutive when the average price of the common stock during the period exceeds the exercise price. Please refer to Note 7 - Stock-Based Compensation for additional discussion.

The following table sets forth the calculations of basic and diluted net income per common share (in thousands, except per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net income	$	405,752	$	40,659	$	966,212	$	15,221

Basic net income per common share	$	4.77	$	1.32	$	11.37	$	0.55
Diluted net income per common share	$	4.74	$	1.31	$	11.30	$	0.55

Weighted-average shares outstanding - basic	85,069		30,849		84,968		27,485
Add: dilutive effect of contingent stock awards	485		289		527		354

Weighted-average shares outstanding - diluted	85,554		31,138		85,495		27,839

There were 109,519 and 115,448 shares that were anti-dilutive for the three months ended September 30, 2022 and 2021, respectively. There were 68,171 and 81,142 shares that were anti-dilutive for the nine months ended September 30, 2022 and 2021, respectively.

The exercise price of the Company's warrants was in excess of the Company's stock price during the three and nine months ended September 30, 2022; therefore, they were excluded from the earnings per share calculation.