Basic and Diluted Net Income Per Share

9 Months Ended

Sep. 30, 2023

Basic net income per share is computed using net income divided by the weighted average number of shares of common stock outstanding (“Weighted Shares”) for the period presented.

Diluted net income per share is computed using net income divided by Weighted Shares and the treasury stock method effect of common equivalent shares (CESs) outstanding for each period presented.

In the following table, we present a reconciliation of earnings per share and the shares used in the computation of earnings per share for the three and nine months ended September 30, 2023 and 2022 (in thousands, except per share data):


	Three Months Ended September 30,					Nine Months Ended September 30,
	2023			2022		2023			2022
	(in thousands, except per share data)					(in thousands, except per share data)

Net income	$	49,421		$	29,674	$	127,832		$	91,091
Earnings per share:
Basic	$	0.80		$	0.47	$	2.07		$	1.45
Effect of CESs		(0.01	)		-		(0.02	)		(0.02	)
Diluted	$	0.79		$	0.47	$	2.05		$	1.43

Weighted average number of shares:
Basic		61,639			62,592		61,902			62,917
Effect of CESs		671			573		599			566
Diluted		62,310			63,165		62,501			63,483

The number of anti-dilutive CESs during the three and nine months ended September 30, 2023 and 2022 was immaterial.