Net Income Per Share

9 Months Ended

Sep. 30, 2022

The following table sets forth the computation of basic net income per share and diluted net income per share under the two-class method:


	Third Quarter				First Nine Months
(in thousands, except per share data)	2022		2021		2022		2021
Numerator for basic and diluted net income per Common Stock and Class B Common Stock share:
Net income	$	118,761	$	68,930	$	311,713	$	170,473
Less dividends:
Common Stock	2,092		1,785		5,970		5,356
Class B Common Stock	251		558		1,060		1,674
Total undistributed earnings	$	116,418	$	66,587	$	304,683	$	163,443

Common Stock undistributed earnings – basic	$	103,937	$	50,731	$	261,064	$	124,522
Class B Common Stock undistributed earnings – basic	12,481		15,856		43,619		38,921
Total undistributed earnings – basic	$	116,418	$	66,587	$	304,683	$	163,443

Common Stock undistributed earnings – diluted	$	103,583	$	50,536	$	260,065	$	123,993
Class B Common Stock undistributed earnings – diluted	12,835		16,051		44,618		39,450
Total undistributed earnings – diluted	$	116,418	$	66,587	$	304,683	$	163,443

Numerator for basic net income per Common Stock share:
Dividends on Common Stock	$	2,092	$	1,785	$	5,970	$	5,356
Common Stock undistributed earnings – basic	103,937		50,731		261,064		124,522
Numerator for basic net income per Common Stock share	$	106,029	$	52,516	$	267,034	$	129,878


	Third Quarter				First Nine Months
(in thousands, except per share data)	2022		2021		2022		2021
Numerator for basic net income per Class B Common Stock share:
Dividends on Class B Common Stock	$	251	$	558	$	1,060	$	1,674
Class B Common Stock undistributed earnings – basic	12,481		15,856		43,619		38,921
Numerator for basic net income per Class B Common Stock share	$	12,732	$	16,414	$	44,679	$	40,595

Numerator for diluted net income per Common Stock share:
Dividends on Common Stock	$	2,092	$	1,785	$	5,970	$	5,356
Dividends on Class B Common Stock assumed converted to Common Stock	251		558		1,060		1,674
Common Stock undistributed earnings – diluted	116,418		66,587		304,683		163,443
Numerator for diluted net income per Common Stock share	$	118,761	$	68,930	$	311,713	$	170,473

Numerator for diluted net income per Class B Common Stock share:
Dividends on Class B Common Stock	$	251	$	558	$	1,060	$	1,674
Class B Common Stock undistributed earnings – diluted	12,835		16,051		44,618		39,450
Numerator for diluted net income per Class B Common Stock share	$	13,086	$	16,609	$	45,678	$	41,124

Denominator for basic net income per Common Stock and Class B Common Stock share:
Common Stock weighted average shares outstanding – basic	8,369		7,141		8,032		7,141
Class B Common Stock weighted average shares outstanding – basic	1,005		2,232		1,342		2,232

Denominator for diluted net income per Common Stock and Class B Common Stock share:
Common Stock weighted average shares outstanding – diluted (assumes conversion of Class B Common Stock to Common Stock)	9,406		9,409		9,410		9,413
Class B Common Stock weighted average shares outstanding – diluted	1,037		2,268		1,378		2,272

Basic net income per share:
Common Stock	$	12.67	$	7.36	$	33.25	$	18.19
Class B Common Stock	$	12.67	$	7.36	$	33.29	$	18.19

Diluted net income per share:
Common Stock	$	12.63	$	7.32	$	33.13	$	18.11
Class B Common Stock	$	12.62	$	7.31	$	33.15	$	18.10

NOTES TO TABLE

(1)For purposes of the diluted net income per share computation for Common Stock, all shares of Class B Common Stock are assumed to be converted; therefore, 100% of undistributed earnings is allocated to Common Stock.

(2)For purposes of the diluted net income per share computation for Class B Common Stock, weighted average shares of Class B Common Stock are assumed to be outstanding for the entire period and not converted.

(3)For periods presented during which the Company has net income, the denominator for diluted net income per share for Common Stock and Class B Common Stock includes the dilutive effect of shares relative to the Long-Term Performance Equity Plan. For periods presented during which the Company has net loss, the unvested shares granted pursuant to the Long-Term Performance Equity Plan are excluded from the computation of diluted net loss per share, as the effect would have been anti-dilutive. See Note 2 for additional information on the Long-Term Performance Equity Plan.

(4)The Long-Term Performance Equity Plan awards may be settled in cash and/or shares of the Company’s Class B Common Stock. Once an election has been made to settle an award in cash, the dilutive effect of shares relative to such award is prospectively removed from the denominator in the computation of diluted net income per share.

(5)The Company did not have anti-dilutive shares for any periods presented.

(6)1,227,546 shares of the Company’s Class B Common Stock were converted on a one share for one share basis into shares of the Company’s Common Stock, effective as of March 17, 2022. See Note 2 for additional information on the Stockholder Conversion Agreement.