Equity

3 Months Ended

Mar. 31, 2021

4. Equity

Non-controlling Interest

We hold an economic interest and are the sole managing member in Spark HoldCo, with affiliates of our Founder holding the remaining economic interests in Spark HoldCo. As a result, we consolidate the financial position and results of operations of Spark HoldCo, and reflect the economic interests owned by these affiliates as a non-controlling interest. The Company and affiliates owned the following economic interests in Spark HoldCo at March 31, 2021 and December 31, 2020, respectively.


	The Company		Affiliated Owners
March 31, 2021	41.53	%	58.47	%
December 31, 2020	41.53	%	58.47	%

The following table summarizes the portion of net (loss) income and income tax expense (benefit) attributable to non-controlling interest (in thousands):


	Three Months Ended March 31,
	2021		2020

Net (loss) income allocated to non-controlling interest	$	(18,321)	$	6,085
Income tax expense allocated to non-controlling interest	1,608		496



Net (loss) income attributable to non-controlling interest	$	(19,929)	$	5,589

Class A Common Stock and Class B Common Stock

Holders of the Company's Class A common stock and Class B common stock vote together as a single class on all matters presented to our stockholders for their vote or approval, except as otherwise required by applicable law or by our certificate of incorporation.

Dividends on Class A Common Stock

Dividends declared for the Company's Class A common stock are reported as a reduction of retained earnings, or a reduction of additional paid in capital to the extent retained earnings are exhausted. During the three months ended March 31, 2021, we paid $2.7 million in dividends to the holders of the Company's Class A common stock. This dividend represented a quarterly rate of $0.18125 per share on each share of Class A common stock.

Dividends declared for the Company's Class A common stock are reported as a reduction of retained earnings, or additional paid in capital in the case retained earnings is exhausted.

In order to pay our stated dividends to holders of our Class A common stock, our subsidiary, Spark HoldCo is required to make corresponding distributions to holders of its units, including those holders that own our Class B common stock (our non-controlling interest holder). As a result, during the three months ended March 31, 2021, Spark HoldCo made corresponding distributions of $3.8 million to our non-controlling interest holders.

Share Repurchase Program

On August 18, 2020, our Board of Directors authorized a share repurchase program of up to $20.0 million of Class A common stock through August 18, 2021. Purchases may be made with available cash balances, our Senior Credit Facility and operating cash flows.

The shares of Class A common stock may be repurchased from time to time in the open market at prevailing market prices or in privately negotiated transactions based on ongoing assessments of capital needs, the market price of the stock, and other factors, including general market conditions. The repurchase program does not obligate us to acquire any particular amount of Class A common stock, may be modified or suspended at any time, and could be terminated prior to completion.

During the three months ended March 31, 2021, we did not repurchase our Class A common stock. The share repurchase program was suspended in March 2021 pursuant to an agreement with lenders under our Senior Credit Facility.

Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income attributable to stockholders (the numerator) by the weighted-average number of Class A common shares outstanding for the period (the denominator). Class B common shares are not included in the calculation of basic earnings per share because they are not participating securities and have no economic interests. Diluted earnings per share is similarly calculated except that the denominator is increased by potentially dilutive securities.

The following table presents the computation of basic and diluted income (loss) per share for the three months ended March 31, 2021 and 2020 (in thousands, except per share data):


	Three Months Ended March 31,
	2021		2020
Net (loss) income attributable to Spark Energy, Inc. stockholders	$	(7,631)	$	4,479
Less: Dividends on Series A preferred stock	1,951		1,500
Net (loss) income attributable to stockholders of Class A common stock	$	(9,582)	$	2,979

Basic weighted average Class A common shares outstanding	14,627		14,381
Basic (loss) income per share attributable to stockholders	$	(0.66)	$	0.21

Net (loss) income attributable to stockholders of Class A common stock	$	(9,582)	$	2,979
Effect of conversion of Class B common stock to shares of Class A common stock	—		—

Diluted net (loss) income attributable to stockholders of Class A common stock	$	(9,582)	$	2,979

Basic weighted average Class A common shares outstanding	14,627		14,381
Effect of dilutive Class B common stock	—		—

Effect of dilutive restricted stock units	—		403
Diluted weighted average shares outstanding	14,627		14,784

Diluted (loss) income per share attributable to stockholders	$	(0.66)	$	0.20

The computation of diluted earnings per share for the three months ended March 31, 2021 and 2020 excludes 20.8 million shares of Class B common stock because the effect of their conversion was antidilutive. The Company's outstanding shares of Series A Preferred Stock were not included in the calculation of diluted earnings per share because they contain only contingent redemption provisions that have not occurred.

Variable Interest Entity

Spark HoldCo is a variable interest entity due to its lack of rights to participate in significant financial and operating decisions and its inability to dissolve or otherwise remove its management. Spark HoldCo owns all of the outstanding membership interests in each of our operating subsidiaries. We are the sole managing member of Spark HoldCo, manage Spark HoldCo's operating subsidiaries through this managing membership interest, and are considered the primary beneficiary of Spark HoldCo. The assets of Spark HoldCo cannot be used to settle our obligations except through distributions to us, and the liabilities of Spark HoldCo cannot be settled by us except through contributions to Spark HoldCo. The following table includes the carrying amounts and classification of the assets and liabilities of Spark HoldCo that are included in our condensed consolidated balance sheet as of March 31, 2021 and December 31, 2020 (in thousands):


	March 31, 2021		December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	81,290	$	71,442
Accounts receivable	55,671		70,350

Other current assets	56,390		55,575
Total current assets	193,351		197,367
Non-current assets:
Goodwill	120,343		120,343

Other assets	13,182		15,259
Total non-current assets	133,525		135,602
Total Assets	$	326,876	$	332,969

Liabilities
Current liabilities:
Accounts payable and accrued liabilities	$	54,883	$	61,436



Other current liabilities	44,228		43,676
Total current liabilities	99,111		105,112
Long-term liabilities:
Long-term portion of Senior Credit Facility	135,000		100,000
Subordinated debt — affiliate	10,000		—

Other long-term liabilities	183		256
Total long-term liabilities	145,183		100,256
Total Liabilities	$	244,294	$	205,368