Earnings Per Share ("EPS")

6 Months Ended

Jun. 30, 2023

Earnings Per Share (“EPS”)

Earnings per share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Basic EPS does not reflect the possibility of dilution that could result from the issuance of additional shares of common stock upon exercise or conversion of outstanding equity awards or convertible notes. Diluted EPS reflects the potential dilution that could occur if stock options, convertible notes, employee stock purchase program (“ESPP”) shares, or other contracts to issue common stock were exercised or converted to common stock that would then share in earnings. For the three months ended June 30, 2023 and 2022, stock options and restricted share awards of 2,626,620 and 1,523,255 shares of common stock, respectively, were excluded in computing diluted earnings per common share because they were anti-dilutive. For the six months ended June 30, 2023 and 2022, stock options and restricted share awards of 1,290,587 and 681,787 shares of common stock, respectively, were excluded in computing diluted earnings per common share because they were anti-dilutive.

The Company previously issued $217.5 million in convertible senior notes maturing on May 15, 2038, of which $444 thousand remained outstanding at June 30, 2023. The convertible notes can be converted into the Company’s shares of common stock at an initial rate of 45.0760 shares per $1,000 principal amount of the notes (See Note 10—“Convertible Notes and Subordinated Debentures” for additional information regarding convertible notes issued). With the adoption of ASU 2020-06, the if-converted method is required for calculating dilutive EPS for all convertible instruments since the treasury stock method is no longer available. Under the if-converted method, the denominator of the diluted EPS calculation is adjusted to reflect the full number of common shares issuable upon conversion, while the numerator is adjusted to add back after-tax interest expense for the period. For the three and six months ended June 30, 2023 and 2022, shares related to the convertible notes issued were not included in the Company’s diluted EPS calculation. In accordance with the terms of the convertible notes and settlement options available to the Company, no shares would have been delivered to investors of the convertible notes based on the Company’s common stock price during the three and six months ended June 30, 2023 and 2022, as the conversion price exceeded the market price of the Company’s stock.

The following tables present computations of basic and diluted EPS for the three and six months ended June 30, 2023 and 2022.


	Three Months Ended June 30,
	2023					2022
	Net Income (Numerator)		Weighted-Average Shares (Denominator)	Earnings Per Share		Net Income (Numerator)		Weighted-Average Shares (Denominator)	Earnings Per Share
	(Dollars in thousands, except share and per share data)
Basic EPS - common stock	$	38,022	119,953,174	$	0.32	$	52,088	120,219,919	$	0.43
Effect of dilutive securities:
Stock options, restricted stock, and ESPP shares			176,185					479,719
Diluted EPS - common stock	$	38,022	120,129,359	$	0.32	$	52,088	120,699,638	$	0.43

	Six Months Ended June 30,
	2023					2022
	Net Income (Numerator)		Weighted-Average Shares (Denominator)	Earnings Per Share		Net Income (Numerator)		Weighted-Average Shares (Denominator)	Earnings Per Share
	(Dollars in thousands, except share and per share data)
Basic EPS - common stock	$	77,143	119,753,321	$	0.64	$	112,826	120,175,894	$	0.94
Effect of dilutive securities:
Stock options, restricted stock, and ESPP shares			426,122					722,711
Diluted EPS - common stock	$	77,143	120,179,443	$	0.64	$	112,826	120,898,605	$	0.93