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Earnings per Share

3 Months Ended

Sep. 30, 2022

8. Earnings per Share

As a result of incurring a net loss from continuing operations for the three months ended September 30, 2021, potential common stock of 559 thousand shares were excluded from diluted loss per share because the effect would have been antidilutive. As further described in Note 15 “Share Repurchases,” on March 14, 2022, we entered into an accelerated share repurchase (“ASR”) agreement to repurchase $150.0 million of common stock. For purposes of calculating earnings per share for the periods presented, Adtalem reflected the ASR agreement as a repurchase of Adtalem common stock and as a forward contract indexed to its own common stock. As of September 30, 2022, based on the volume-weighted average price of Adtalem’s common stock per the terms of the ASR agreement, common stock of 306 thousand shares were contingently issuable by Adtalem under the ASR agreement and were included in the diluted earnings per share calculation for the three months ended September 30, 2022 because the effect would have been dilutive. Certain shares related to stock awards were excluded from the computation of earnings per share because the effect would have been antidilutive. The following table sets forth the computations of basic and diluted earnings per share and antidilutive shares (in thousands, except per share data):


	Three Months Ended
	September 30,
	2022		2021
Numerator:
Net income (loss):
Continuing operations	$	5,846	$	(77,182)
Discontinued operations		(3,654)		19,178
Net income (loss)	$	2,192	$	(58,004)

Denominator:
Weighted-average basic shares outstanding		45,274		49,663
Effect of dilutive stock awards		762		—
Effect of ASR		306		—
Weighted-average diluted shares outstanding		46,342		49,663

Earnings (loss) per share:
Basic:
Continuing operations	$	0.13	$	(1.55)
Discontinued operations	$	(0.08)	$	0.39
Total basic earnings (loss) per share	$	0.05	$	(1.17)
Diluted:
Continuing operations	$	0.13	$	(1.55)
Discontinued operations	$	(0.08)	$	0.39
Total diluted earnings (loss) per share	$	0.05	$	(1.17)

Weighted-average antidilutive shares		477		1,045