Net Income Per Share

3 Months Ended

Mar. 31, 2023

Basic net income per common share is computed by dividing net income by the weighted-average number of common shares outstanding during each period. Restricted shares have non-forfeitable rights to dividends and as a result, are considered participating securities for purposes of computing net income per common share pursuant to the two-class method. Diluted net income per common share assumes the exercise of outstanding stock options and the vesting of performance share awards using the treasury stock method when the effects of such assumptions are dilutive.

A reconciliation of net income attributable to Forward Air and weighted-average common shares outstanding for purposes of calculating basic and diluted net income per share during the three months ended March 31, 2023 and 2022 is as follows:


	Three Months Ended
	March 31, 2023		March 31, 2022

Numerator:


Net income attributable to Forward Air	$	36,368	$	42,686



Income allocated to participating securities	(185)		(248)

Numerator for basic and diluted net income per share	$	36,183	$	42,438


Denominator:
Denominator for basic net income per share - weighted-average number of common shares outstanding	26,350		26,947
Dilutive stock options and performance share awards	129		153
Denominator for diluted net income per share - weighted-average number of common shares and common share equivalents outstanding	26,479		27,100

Net income per share:


Basic	$	1.37	$	1.57




Diluted	$	1.37	$	1.57

The number of shares that were not included in the calculation of net income per diluted share because to do so would have been anti-dilutive for the three months ended March 31, 2023 and 2022 are as follows:


	Three Months Ended
	March 31, 2023	March 31, 2022
Anti-dilutive stock options	112	64
Anti-dilutive performance shares	18	14
Anti-dilutive restricted shares and deferred stock units	74	—
Total anti-dilutive shares	204	78