Earnings Per Share

3 Months Ended

Mar. 31, 2022

Basic and diluted earnings per share are calculated based on the weighted-average number of shares outstanding in each period and dilutive stock options, unvested shares and warrants, to the extent such securities exist and have a dilutive effect on earnings per share. The Company computes basic and diluted earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation method that determines earnings per share for common shares and participating securities according to their participation rights in dividends and undistributed earnings.

A reconciliation of the numerator and denominator of basic and diluted earnings per share follows (dollars in millions, except per share amounts; shares in thousands):


	Three Months Ended March 31,
	2022		2021
Numerator:
Net income (loss) attributable to Surgery Partners, Inc.	$	12.2	$	(21.0)
Less: amounts allocated to participating securities (1)	—		(10.3)
Net income (loss) attributable to common stockholders	$	12.2	$	(31.3)

Denominator:
Weighted average shares outstanding- basic	87,995		54,773
Weighted average shares outstanding- diluted (2)	90,272		54,773

Income (loss) per share:
Basic	$	0.14	$	(0.57)
Diluted (2)	$	0.14	$	(0.57)

Dilutive securities outstanding not included in the computation of income (loss) per share as their effect is antidilutive:
Stock options	1,634		1,728
Restricted shares	643		1,410

(1)Includes dividends accrued for the Series A Preferred Stock for the three months ended March 31, 2021. The Series A Preferred Stock did not participate in undistributed losses and was converted to common stock during the second quarter of 2021. There were no participating securities for the three months ended March 31, 2022.

(2)The impact of potentially dilutive securities for the three months ended March 31, 2021, was not considered because the effect would be anti-dilutive.