| Earnings Per Share |
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:
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Three Months Ended |
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Three Months Ended |
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June 30, 2023 |
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June 30, 2022 |
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Income |
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Shares (a) |
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Per Share |
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Loss |
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Shares (a) |
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Per Share |
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(Numerator) |
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(Denominator) |
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Amount |
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(Numerator) |
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(Denominator) |
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Amount |
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Net income (loss) |
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$ |
14,882 |
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$ |
(8,542 |
) |
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Less: Net income attributable to redeemable
noncontrolling interest |
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(2,337 |
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(2,268 |
) |
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Less: TypTap Group’s net (income) loss
attributable to non-HCI common
stockholders and TypTap Group’s
participating securities |
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(102 |
) |
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829 |
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Net income (loss) attributable to HCI |
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12,443 |
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(9,981 |
) |
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Less: (Income) loss attributable to
participating securities |
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(427 |
) |
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635 |
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Basic Earnings (Loss) Per Share: |
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Income (loss) allocated to common
stockholders |
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12,016 |
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8,302 |
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$ |
1.45 |
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(9,346 |
) |
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9,022 |
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$ |
(1.04 |
) |
Effect of Dilutive Securities: * |
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Stock options |
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— |
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74 |
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— |
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— |
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Convertible senior notes |
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1,924 |
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2,538 |
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— |
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— |
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Warrants |
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— |
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7 |
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— |
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— |
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Diluted Earnings (Loss) Per Share: |
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Income (loss) available to common
stockholders and assumed conversions |
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$ |
13,940 |
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10,921 |
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$ |
1.28 |
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$ |
(9,346 |
) |
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9,022 |
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$ |
(1.04 |
) |
* For the three months ended June 30, 2022, convertible senior notes, stock options, and warrants were excluded due to anti-dilutive effect.
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Six Months Ended |
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Six Months Ended |
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June 30, 2023 |
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June 30, 2022 |
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Income |
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Shares (a) |
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Per Share |
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Loss |
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Shares (a) |
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Per Share |
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(Numerator) |
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(Denominator) |
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Amount |
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(Numerator) |
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(Denominator) |
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Amount |
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Net income (loss) |
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$ |
32,675 |
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$ |
(5,751 |
) |
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Less: Net income attributable to redeemable
noncontrolling interest |
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(4,661 |
) |
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(4,516 |
) |
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Less: TypTap Group’s net (income) loss
attributable to non-HCI common
stockholders and TypTap Group’s
participating securities |
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(233 |
) |
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1,189 |
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Net income (loss) attributable to HCI |
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27,781 |
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(9,078 |
) |
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Less: (Income) loss attributable to
participating securities |
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(985 |
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590 |
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Basic Earnings (Loss) Per Share: |
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Income (loss) allocated to common
stockholders |
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26,796 |
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8,290 |
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$ |
3.23 |
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(8,488 |
) |
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9,249 |
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$ |
(0.92 |
) |
Effect of Dilutive Securities: * |
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Stock options |
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— |
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58 |
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— |
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— |
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Convertible senior notes |
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3,844 |
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2,538 |
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— |
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— |
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Diluted Earnings (Loss) Per Share: |
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Income (loss) available to common
stockholders and assumed conversions |
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$ |
30,640 |
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10,886 |
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$ |
2.81 |
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$ |
(8,488 |
) |
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9,249 |
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$ |
(0.92 |
) |
* For the six months ended June 30, 2023, warrants were excluded due to anti-dilutive effect. For the six months ended June 30, 2022, convertible senior notes, stock options, and warrants were excluded due to anti-dilutive effect. |