EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY

14 Months Ended

Jun. 30, 2021

EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY

NOTE 3: EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY

EARNINGS PER SHARE – Basic and diluted earnings (loss) per share is computed using the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income (loss) from continuing operations attributable to common shareholders by the weighted average shares outstanding during each period. Diluted earnings per share excludes the impact of shares of common stock issuable upon the lapse of certain restrictions or the exercise of options to purchase 0.3 million shares for the two months ended June 30, 2021 as the effect would be antidilutive, and 5.0 million shares for the two months ended June 30, 2020, as the effect would be antidilutive due to the net loss from continuing operations during the period.

The computations of basic and diluted earnings (loss) per share from continuing operations are as follows:


(in 000s, except per share amounts)
	Two months ended June 30,
	2021		2020
Net income (loss) from continuing operations attributable to shareholders	$	91,119	$	(9,129)
Amounts allocated to participating securities	(402)		(174)
Net income (loss) from continuing operations attributable to common shareholders	$	90,717	$	(9,303)

Basic weighted average common shares	181,473		192,480
Potential dilutive shares	3,389		—
Dilutive weighted average common shares	184,862		192,480

Earnings (loss) per share from continuing operations attributable to common shareholders:
Basic	$	0.50	$	(0.05)
Diluted	0.49		(0.05)

The decrease in the weighted average shares outstanding is due to share repurchases completed in prior fiscal years.

STOCK-BASED COMPENSATION – During the two months ended June 30, 2021, we granted 14.6 thousand shares under our stock-based compensation plan. We granted awards of 1.8 million shares under our stock-based compensation plans during the two months ended June 30, 2020. The change in shares granted compared to the prior year is due to the change in timing of grants due to the change in our fiscal year. Stock-based compensation expense of our continuing operations totaled $4.7 million for the two months ended June 30, 2021 and $5.2 million for the two months ended June 30, 2020. As of June 30, 2021, unrecognized compensation cost for stock options totaled $0.7 million, and for nonvested shares and units totaled $33.2 million.