Earnings Per Share

3 Months Ended

Mar. 31, 2023

Note 17 -- Earnings Per Share

U.S. GAAP requires the Company to use the two-class method in computing basic earnings (loss) per share since holders of the Company’s restricted stock have the right to share in dividends, if declared, equally with common stockholders. These participating securities affect the computation of both basic and diluted earnings (loss) per share during periods of net income or loss. For a majority-owned subsidiary, its basic and diluted earnings (loss) per share are first computed separately. Then, the Company’s proportionate share in that majority-owned subsidiary’s earnings is added to the computation of both basic and diluted earnings (loss) per share at a consolidated level.

A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below:


	Three Months Ended							Three Months Ended
	March 31, 2023							March 31, 2022
	Income			Shares (a)		Per Share		Income			Shares (a)		Per Share
	(Numerator)			(Denominator)		Amount		(Numerator)			(Denominator)		Amount
Net income	$	17,793						$	2,791
Less: Net income attributable to redeemable noncontrolling interest		(2,324	)						(2,248	)
Less: TypTap Group’s net (income) loss attributable to non-HCI common stockholders and TypTap Group’s participating securities		(131	)						360
Net income attributable to HCI		15,338							903
Less: Income attributable to participating securities		(564	)						(52	)
Basic Earnings Per Share:
Income allocated to common stockholders		14,774			8,278	$	1.78		851			9,479	$	0.09
Effect of Dilutive Securities: *
Stock options		—			45				—			135
Convertible senior notes		1,921			2,537				—			—
Warrants		—			—				—			153
Diluted Earnings Per Share:
Income available to common stockholders and assumed conversions	$	16,695			10,860	$	1.54	$	851			9,767	$	0.09

(a)

Shares in thousands.

* For the three months ended March 31, 2023, warrants were excluded due to anti-dilutive effect. For the three months ended March 31, 2022, convertible senior notes were excluded due to anti-dilutive effect.