EARNINGS PER SHARE

12 Months Ended

Dec. 31, 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.

As discussed in Note 7 - Stock-Based Compensation, PSUs represent the right to receive a number of shares of the Company’s common stock ranging from zero to two times the number of PSUs granted based on the performance achievement over the applicable performance period. 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 awards.

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 that 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.

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


	Year Ended December 31,
	2022		2021		2020
Net income	$	1,248,080	$	178,921	$	103,528

Basic net income per common share	$	14.68	$	4.82	$	4.98
Diluted net income per common share	$	14.58	$	4.74	$	4.95

Weighted-average shares outstanding - basic	85,005		37,155		20,774
Add: dilutive effect of stock awards	599		591		138
Weighted-average shares outstanding - diluted	85,604		37,746		20,912

There were 20,699, 178,051, and 248,744 unvested awards that were anti-dilutive for the years ended December 31, 2022, 2021, and 2020 respectively. The exercise price of the Company’s warrants was in excess of the Company’s stock price during the years ended December 31, 2022 and 2021; therefore, they were excluded from the earnings per share calculation.