Earnings Per Share

9 Months Ended

Sep. 30, 2023

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. During the three and nine months ended September 30, 2023, the Company did not make any repurchases under the share repurchase program. During the three and nine months ended September 30, 2022, the Company repurchased 457,244 and 1,280,857 shares of its common stock for approximately $25.9 million and $76.6 million, respectively. 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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net income	$	19,339	$	31,494	$	64,270	$	267,682

Total weighted-average basic shares outstanding	23,712		23,958		23,644		24,344
Dilutive effect of stock-based awards	165		301		191		365
Dilutive effect of convertible and exchangeable senior notes	505		1,660		700		1,892

Total weighted-average dilutive shares outstanding	24,382		25,919		24,535		26,601

Basic earnings per share	$	0.82	$	1.31	$	2.72	$	11.00
Diluted earnings per share	$	0.79	$	1.22	$	2.62	$	10.06

There were no anti-dilutive employee stock options outstanding during the three and nine months ended September 30, 2023 and 2022.