COMMON STOCK AND EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2024

COMMON STOCK AND EARNINGS PER SHARE

COMMON STOCK AND EARNINGS PER SHARE

NOTE 13. COMMON STOCK AND EARNINGS PER SHARE

Basic earnings per common share is computed by dividing net income (loss) attributable to common stockholders during the period by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is based on the assumption of the vesting of restricted stock at the beginning of each period using the treasury stock method at average cost for the periods. Effective as of January 1, 2022, diluted earnings per common share also reflects the 2025 Notes (hereinafter defined) on an if-converted basis.

The following is a reconciliation of basic and diluted earnings per common share for each of the periods presented (in thousands, except share and per share data):

	Three Months Ended
	March 31, 2024		March 31, 2023
Basic and Diluted Earnings:
Net Income (Loss) Attributable to Common Stockholders, Used in Basic EPS	$	4,655	$	(7,188)
Add Back: Effect of Dilutive Interest Related to 2025 Notes (1)		534		—
Net Income (Loss) Attributable to Common Stockholders, Used in Diluted EPS	$	5,189	$	(7,188)
Basic and Diluted Shares:
Weighted Average Shares Outstanding, Basic		22,551,241		22,704,829
Common Shares Applicable to Unvested Restricted Stock Using the Treasury Stock Method		554		—
Common Shares Applicable to Dilutive Effect of 2025 Notes (2)		3,505,857		—
Weighted Average Shares Outstanding, Diluted		26,057,652		22,704,829
Per Share Information:
Net Income (Loss) Attributable to Common Stockholders
Basic	$	0.21	$	(0.32)
Diluted	$	0.20	$	(0.32)

⁽¹⁾ As applicable, includes interest expense, amortization of discount, amortization of fees, and other changes in net income or loss that would result from the assumed conversion of the 2025 Convertible Senior Notes effective January 1, 2022 due to the implementation of ASU 2020-06 which requires presentation on an if-converted basis. For the three months ended March 31, 2023, a total of $0.5 million of interest was not included, as the impact of the 2025 Notes, if-converted, would have been antidilutive to net income (loss) attributable to common stockholders for the period. For the three months ended March 31, 2024, a total of $0.5 million was included as the impact to earnings per share, if-converted, would have been dilutive to net income attributable to common stockholders for the period.

⁽²⁾ A total of 3.5 million shares representing the dilutive impact of the 2025 Notes, upon adoption of ASU 2020-06 effective January 1, 2022, were included in the computation of diluted net income per share attributable to common stockholders for the three months ended March 31, 2024, because they were dilutive to net income attributable to common stockholders for the period. A total of 3.2 million shares, representing the dilutive impact of the 2025 Notes, upon adoption of ASU 2020-06 effective January 1, 2022, were not included in the computation of diluted net income (loss) attributable to common stockholders for the three months ended March 31, 2023, because they were antidilutive to net income (loss) attributable to common stockholders for the period.

There were 554 potentially dilutive shares for the three months ended March 31, 2024 and no potentially dilutive securities for the three months ended March 31, 2023 related to the Company’s restricted stock. The effect of 68,447 potentially dilutive restricted stock units were not included for the three months ended March 31, 2023, as the effect would be antidilutive.

Effective January 1, 2022, the Company adopted ASU 2020-06 whereby diluted EPS includes the dilutive impact, if any, of the 2025 Notes using the if-converted method, irrespective of intended cash settlement. The Company intends to settle its 3.875% Convertible Senior Notes due 2025 (the “2025 Notes”) in cash upon conversion with any excess conversion value to be settled in shares of our common stock. The Company elected, upon adoption, to utilize the modified retrospective approach, negating the required restatement of EPS for periods prior to adoption. The effect of 3.5 million potentially dilutive shares issuable on the conversion of the 2025 Notes, if-converted, were included for the three months ended March 31, 2024. The effect of 3.2 million potentially dilutive shares issuable on the conversion of the 2025 Notes, if-converted, were not included for the three months ended March 31, 2023, as the effect would be antidilutive.