EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2024

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 we recognize 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.

We have also issued warrants, which represent the right to purchase our common stock at a specified exercise price. The number of potentially dilutive shares related to the 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 warrants’ term. Warrants are only dilutive when the average price of the common stock during the period exceeds the exercise price. The exercise price of our warrants was in excess of our stock price during the three and nine months ended September 30, 2024 and 2023; therefore, they were excluded from the earnings per share calculation.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net income	$	295,803	$	139,672	$	687,613	$	481,420

Basic earnings per common share	$	3.02	$	1.57	$	6.91	$	5.75
Diluted earnings per common share	$	3.01	$	1.56	$	6.88	$	5.70

Weighted-average shares outstanding - basic	97,905		88,911		99,540		83,700
Add: dilutive effect of stock awards	319		720		411		768
Weighted-average shares outstanding - diluted	98,224		89,631		99,951		84,468

There were 160,611 and 10,103 shares that were anti-dilutive for the three months ended September 30, 2024 and 2023, respectively. There were 144,300 and 7,437 shares that were anti-dilutive for the nine months ended September 30, 2024 and 2023, respectively.