Earnings per Share

9 Months Ended

Sep. 30, 2022

Basic earnings per share is computed by dividing net income by the weighted-average number of shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the sum of (1) the weighted-average number of shares of common stock outstanding during the period, and (2) the dilutive effect of assumed conversion of equity awards using the treasury stock method. With respect to the number of weighted-average shares outstanding (denominator), diluted shares reflects: (i) the exercise of options to acquire common stock to the extent that the options’ exercise prices are less than the average market price of common shares during the period and (ii) the pro forma vesting of restricted stock units.

The following table sets forth the computations of basic and diluted earnings per share:


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021

Basic earnings per share
Numerator:
Net income attributable to Mistras Group, Inc.	$	4,373	$	3,380	$	3,653	$	3,955
Denominator:
Weighted average common shares outstanding	29,965		29,619		29,879		29,550
Basic earnings per share	$	0.15	$	0.11	$	0.12	$	0.13

Diluted earnings per share:
Numerator:
Net income attributable to Mistras Group, Inc.	$	4,373	$	3,380	$	3,653	$	3,955
Denominator:
Weighted average common shares outstanding	29,965		29,619		29,879		29,550
Dilutive effect of stock options outstanding	—		—		—		—
Dilutive effect of restricted stock units outstanding	280		508		330		543
	30,245		30,127		30,209		30,093
Diluted earnings per share	$	0.14	$	0.11	$	0.12	$	0.13