Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2023

The Company calculates earnings per share under the two-class method. During the third quarter of 2022, the Company granted RSUs which include non-forfeitable rights to dividends and are therefore considered “participating securities.” Accordingly, effective in the third quarter of 2022, the Company began to compute earnings per share under the two-class earnings allocation method. The two-class method is an earnings allocation formula that computes earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

Basic earnings per share amounts have been computed as (i) net income (loss) (ii) less distributed and undistributed earnings allocated to participating securities (iii) divided by the weighted average number of basic shares outstanding for the periods presented. Diluted earnings per share amounts have been computed as (i) basic net income attributable to common stockholders (ii) plus the reallocation of distributed and undistributed earnings allocated to participating securities (iii) divided by the weighted average number of diluted shares outstanding for the periods presented. The Company calculates diluted earnings per share under both the two-class method and treasury stock method and reports the more dilutive of the two calculations.

The following table summarizes the basic and diluted earnings per share for the periods presented:


	Three Months Ended June 30,				Six Months Ended June 30,

	2023		2022		2023		2022
	(In thousands, except per share data)

Net income from continuing operations	$	216,071	$	130,839	$	513,070	$	111,288
Distributed and undistributed earnings allocated to participating securities	(726)		—		(1,453)		—
Net income from continuing operations attributable to common stockholders (basic)	215,345		130,839		511,617		111,288
Reallocation of distributed and undistributed earnings allocated to participating securities	12		—		20		—
Net income from continuing operations attributable to common stockholders (diluted)	$	215,357	$	130,839	$	511,637	$	111,288

Weighted average common shares outstanding:
Basic weighted average common shares outstanding	41,494		19,553		41,531		19,430
Dilutive effect of share-based awards	933		1,131		917		1,167
Dilutive effect of warrants	959		306		819		386
Diluted weighted average common shares outstanding	43,386		20,990		43,267		20,983

Basic earnings per share from continuing operations	$	5.19	$	6.69	$	12.32	$	5.73
Diluted earnings per share from continuing operations	$	4.96	$	6.23	$	11.83	$	5.30

Anti-dilutive weighted average common shares:
Potential common shares	4,118		1,127		4,340		1,218

For the three and six months ended June 30, 2023 and 2022, the diluted earnings per share calculation excludes the impact of unvested share-based awards and outstanding warrants that were anti-dilutive.

For the six months ended June 30, 2022, basic and diluted earnings per share from discontinued operations were $24.99 and $23.14, respectively.