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Earnings Per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share

Earnings Per Share

Note 18. Earnings per Share

Westrock Series A Preferred Shares and our RSUs issued under our 2022 Equity Plan are considered participating securities as they receive non-forfeitable rights to dividends at the same rate as Common Shares. As participating securities, we include these instruments in the computation of earnings per share under the two-class method described in ASC 260 Earnings per Share (“ASC 260”).

The dilutive effect of Westrock Series A Preferred Shares and the Convertible Notes is calculated using the if-converted method, which assumes an add-back of any accretion on preferred shares and interest expense associated with the Convertible Notes to net income attributable to shareholders as if the securities were converted to common shares at the beginning of the reporting period (or at the time of issuance, if later), and the resulting common shares being included in the number of weighted-average units outstanding.

The dilutive effect of time-based option awards and RSUs is calculated using the treasury stock method, while performance-based awards are treated as contingently issuable.

The following potentially dilutive securities were excluded from the computation of diluted shares for the periods indicated because their inclusion would have an anti-dilutive effect on dilutive earnings (loss) per common share.


		Three Months Ended June 30,						Six Months Ended June 30,
(Thousands)		2024			2023			2024			2023
Warrants			19,144			19,144			19,144			19,155
Restricted stock			2,860			2,242			2,504			1,788
Options			1,316			1,476			1,322			1,505
If-converted securities			30,517			23,566			25,278			23,575

The following table sets forth the computation of basic and diluted earnings per share under the two-class method for the periods indicated.


		Three Months Ended June 30,						Six Months Ended June 30,
(Thousands, except per share data)		2024			2023			2024			2023
Basic Earnings per Common Share
Numerator:
Net income (loss) attributable to common shareholders		$	(17,672)		$	(26,724)		$	(41,258)		$	(31,493)
Denominator:
Weighted-average common shares outstanding - basic			88,323			75,726			88,209			75,543
Basic earnings (loss) per common share		$	(0.20)		$	(0.35)		$	(0.47)		$	(0.42)

Diluted Earnings per Common Share
Numerator:
Net income (loss) attributable to common shareholders - basic		$	(17,672)		$	(26,724)		$	(41,258)		$	(31,493)
Effect of participating securities			—			—			—			—
Effect of non-participating securities			—			—			—			—
Net income (loss) attributable to common shareholders - diluted		$	(17,672)		$	(26,724)		$	(41,258)		$	(31,493)
Denominator:
Weighted-average common shares outstanding - basic			88,323			75,726			88,209			75,543
Effect of dilutive participating securities			—			—			—			—
Effect of dilutive non-participating securities			—			—			—			—
Weighted-average common shares outstanding - diluted			88,323			75,726			88,209			75,543

Dilutive loss per common share		$	(0.20)		$	(0.35)		$	(0.47)		$	(0.42)