Earnings per Share

9 Months Ended

Sep. 30, 2023

Note 11 – Earnings per Share

Earnings per share ("EPS") is calculated under the two-class method. Under the two-class method, all earnings (distributed and undistributed) are allocated to common stock and participating securities. The Company grants restricted stock awards to certain employees under its share-based compensation program, which entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested restricted stock awards meet the definition of participating securities based on their respective rights to receive nonforfeitable dividends.

Diluted EPS incorporates the potential impact of contingently issuable shares. Diluted EPS is calculated under both the two-class and treasury stock methods, and the more dilutive amount is reported. Performance stock units ("PSUs") and unvested restricted stock awards are contingently issuable common shares and are included in diluted EPS if the effect is dilutive.

The following table presents the calculation of basic and diluted EPS (in thousands, except per share amounts):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Basic earnings per share
Net income (loss) attributable to the Company	$	13,262		$	(14,294	)	$	(5,267	)	$	(96,404	)
Less: Earnings allocable to unvested restricted stock		(305	)		(216	)		(837	)		(426	)
Net income (loss) attributable to common shareholders		12,957			(14,510	)		(6,104	)		(96,830	)
Weighted-average basic shares outstanding		31,305			30,973			31,307			29,725
Net income (loss) per share attributable to common shareholders	$	0.41		$	(0.47	)	$	(0.19	)	$	(3.26	)

Diluted earnings per share (1)
Net income (loss) attributable to common shareholders	$	12,957		$	(14,510	)	$	(6,104	)	$	(96,830	)
Weighted-average diluted shares outstanding		31,305			30,973			31,307			29,725
Net income (loss) per share attributable to common shareholders	$	0.41		$	(0.47	)	$	(0.19	)	$	(3.26	)

(1)

For the three and nine months ended September 30, 2023, the computation of diluted EPS does not include contingently issuable shares related to unvested restricted stock awards due to their anti-dilutive nature. For the three and nine months ended September 30, 2023, had the contingently issuable shares been dilutive, the denominator for diluted EPS would have included 29 and 13 contingently issuable shares, respectively, related to unvested restricted stock awards. For the three and nine months ended September 30, 2022, the computation of diluted EPS does not include contingently issuable shares related to PSUs and unvested restricted stock awards due to their anti-dilutive nature. For the three and nine months ended September 30, 2022, had the contingently issuable shares been dilutive, the denominator for diluted EPS would have included 314 and 235 contingently issuable shares, respectively, related to PSUs and unvested restricted stock awards.