Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2024

Note 13. Earnings Per Share

Basic earnings per share is calculated by dividing Net income by the weighted-average number of shares of the Company's common stock outstanding. Diluted earnings per share is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of shares under stock-based compensation plans, unless the inclusion of such shares would have an anti-dilutive impact. As part of the AccuTrade Acquisition, the Company may pay up to $15.0 million of the contingent consideration in shares of the Company's common stock at a future date. Those potential shares have been excluded from the computations below because they are contingently issuable shares, and the contingency to which the issuance relates was not met at the end of the reporting period. The computation of Earnings per share is as follows (in thousands, except per share amounts):


	Year Ended December 31,
	2024		2023		2022
Net income (1)	$	48,188	$	118,442	$	17,206
Basic weighted-average common shares outstanding		66,006		66,742		68,215
Effect of dilutive stock-based compensation awards (2)		1,381		1,485		1,434
Diluted weighted-average common shares outstanding		67,387		68,227		69,649
Earnings per share, basic (1)	$	0.73	$	1.77	$	0.25
Earnings per share, diluted (1)		0.72		1.74		0.25

(1)

During the year ended December 31, 2023 the Company released a significant portion of its valuation allowance for deferred tax assets that had been recorded as a result of the 2020 goodwill and indefinite-lived intangible asset impairments. For more information, see Note 14 (Income Taxes).

(2)

There were 31, 290 and 2,033 potential common shares excluded from diluted weighted-average common shares outstanding for the years ended December 31, 2024, 2023 and 2022, respectively, as their inclusion would have had an anti-dilutive effect.