Earnings Per Share

9 Months Ended

Sep. 30, 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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Numerator:
Net loss attributable to Surgery Partners, Inc.	$	(25.0)	$	(22.9)	$	(31.2)	$	(70.8)
Less: amounts allocated to participating securities (1)	—		—		—		(10.3)
Net loss attributable to common stockholders	$	(25.0)	$	(22.9)	$	(31.2)	$	(81.1)

Denominator:
Weighted average shares outstanding- basic	88,907		80,726		88,604		68,350
Weighted average shares outstanding- diluted (2)	88,907		80,726		88,604		68,350

Loss per share:
Basic	$	(0.28)	$	(0.28)	$	(0.35)	$	(1.19)
Diluted (2)	$	(0.28)	$	(0.28)	$	(0.35)	$	(1.19)

Dilutive securities outstanding not included in the computation of loss per share as their effect is antidilutive:
Stock options	1,323		1,974		1,527		1,927
Restricted shares	604		1,461		669		1,444

(1)Includes dividends accrued for the Series A Preferred Stock for the nine months ended September 30, 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 and nine months ended September 30, 2022 and the three months ended Septemberer 30, 2021.

(2)The impact of potentially dilutive securities for all periods presented was not considered because the effect would be anti-dilutive.