Earnings per Share

6 Months Ended

Dec. 31, 2022

Earnings per Share

Earnings per Share

8. Earnings per Share

As a result of incurring a net loss from continuing operations for the six months ended December 31, 2021, potential common stock of 447 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. Based on the volume-weighted average price of Adtalem’s common stock per the terms of the ASR agreement, common stock of 153 thousand shares were contingently issuable by Adtalem under the ASR agreement and were included in the diluted earnings per share calculation for the six months ended December 31, 2022 because the effect would have been dilutive. As of December 31, 2022 no shares were contingently issuable under the ASR agreement. 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				Six Months Ended
	December 31,				December 31,
	2022		2021		2022		2021
Numerator:
Net income (loss):
Continuing operations	$	23,617	$	39,034	$	29,463	$	(38,148)
Discontinued operations		527		(21,181)		(3,127)		(2,003)
Net income (loss)	$	24,144	$	17,853	$	26,336	$	(40,151)
Denominator:
Weighted-average basic shares outstanding		45,425		49,776		45,350		49,719
Effect of dilutive stock awards		696		461		729		—
Effect of ASR		—		—		153		—
Weighted-average diluted shares outstanding		46,121		50,237		46,232		49,719
Earnings (loss) per share:
Basic:
Continuing operations	$	0.52	$	0.78	$	0.65	$	(0.77)
Discontinued operations	$	0.01	$	(0.43)	$	(0.07)	$	(0.04)
Total basic earnings (loss) per share	$	0.53	$	0.36	$	0.58	$	(0.81)
Diluted:
Continuing operations	$	0.51	$	0.78	$	0.64	$	(0.77)
Discontinued operations	$	0.01	$	(0.42)	$	(0.07)	$	(0.04)
Total diluted earnings (loss) per share	$	0.52	$	0.36	$	0.57	$	(0.81)
Weighted-average antidilutive shares		365		1,336		421		1,254