Earnings Per Share

3 Months Ended

Mar. 31, 2022

Basic earnings per share is calculated by dividing net earnings attributable to Encore by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is calculated based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period. Dilutive potential common shares include outstanding stock-based awards, and the dilutive effect of the convertible and exchangeable senior notes, if applicable.

On August 12, 2015, the Company’s Board of Directors approved a $50.0 million share repurchase program. On May 5, 2021, the Company announced that the Board of Directors had approved an increase in the size of the repurchase program from $50.0 million to $300.0 million (an increase of $250.0 million). Repurchases under this program are expected to be made with cash on hand and may be made from time to time, subject to market conditions and other factors, in the open market, through private transactions, block transactions, or other methods as determined by the Company’s management and Board of Directors, and in accordance with market conditions, other corporate considerations, and applicable regulatory requirements. The program does not obligate the Company to acquire any particular amount of common stock, and it may be modified or suspended at any time at the Company’s discretion. The Company continues to repurchase its common stock under this program. During the three months ended March 31, 2022, the Company repurchased 399,522 shares of its common stock for approximately $25.6 million. The Company’s practice is to retire the shares repurchased.

A reconciliation of shares used in calculating earnings per basic and diluted shares follows (in thousands, except per share amounts):


	Three Months Ended March 31,
	2022		2021
Net income attributable to Encore Capital Group, Inc. stockholders	$	175,749	$	94,630

Total weighted-average basic shares outstanding	24,722		31,469
Dilutive effect of stock-based awards	540		363
Dilutive effect of convertible and exchangeable senior notes	2,220		—

Total weighted-average dilutive shares outstanding	27,482		31,832

Basic earnings per share	$	7.11	$	3.01
Diluted earnings per share	$	6.40	$	2.97

Anti-dilutive employee stock options outstanding were zero and approximately 13,000 during the three months ended March 31, 2022 and 2021, respectively.