EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2023

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 225% (or, for PSUs granted prior to fiscal year 2023, 200%) 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):


	Three Months Ended March 31,
	2023		2022
Net income	$	202,461	$	91,639

Basic net income per common share	$	2.48	$	1.08
Diluted net income per common share	$	2.46	$	1.07

Weighted-average shares outstanding - basic	81,719		84,840
Add: dilutive effect of stock awards	711		486
Weighted-average shares outstanding - diluted	82,430		85,326

There were 138,049 and 18,436 shares that were anti-dilutive for the three months ended March 31, 2023 and 2022, respectively.

The exercise price of the Company’s warrants was in excess of the Company’s stock price during the three months ended March 31, 2023 and 2022; therefore, they were excluded from the earnings per share calculation.