Earnings Per Share

3 Months Ended

Mar. 31, 2023

Basic and diluted earnings per share have been calculated using the weighted average number of common shares outstanding for the period.

The shares of common stock effectively repurchased in connection with the Forward Transactions (as defined and described in Note 6, “Long-Term Debt and Other Liabilities”) were considered participating securities requiring the two-class method to calculate basic and diluted earnings per share. Net earnings were allocated between common shares and participating securities on a one-to-one basis. The calculation of weighted average shares outstanding as of March 31, 2022 excluded approximately 0.6 million shares associated with the Forward Transactions. As of March 31, 2023, there were no outstanding shares associated with the Forward Transactions. Refer to Note 6, “Long-Term Debt and Other Liabilities,” for further information.

The diluted earnings per share calculations exclude the effect of stock options, deferred stock units, restricted stock units and convertible notes when the computation is anti-dilutive. For the three-month periods ended March 31, 2023 and 2022, the weighted average number of shares excluded from the computation was 0.6 million and 0.2 million, respectively.

The following table sets forth the computation of basic and diluted earnings per share for the three-month periods ended March 31, 2023 and 2022; however, for the reasons and periods described above, the shares of common stock associated with the Forward Transactions were excluded from the computation of basic earnings per share (in thousands, except per share amounts):


	For the Three Months Ended March 31,
	2023						2022
	Income (Numerator)		Shares (Denominator)		Per Share Amount		Income (Numerator)		Shares (Denominator)		Per Share Amount
Net income	$	20,449					$	22,196
Less: participation rights on Forward Transactions		—						113

Basic earnings per share
Undistributed income	$	20,449		129,136	$	0.16	$	22,083		111,414	$	0.20

Effect of dilutive securities
Stock-based compensation		—		4,466				—		5,550
2022 Convertible Notes		—		—				1,819		17,131

Diluted earnings per share
Undistributed income and assumed conversions	$	20,449		133,602	$	0.15	$	23,902		134,095	$	0.18

Earnings per share - basic					$	0.16					$	0.20
Earnings per share - diluted					$	0.15					$	0.18