Earnings per Share

9 Months Ended

Mar. 31, 2024

Earnings per Share

Earnings per Share

8. Earnings per Share

As further described in Note 14 “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, 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 102 thousand shares were contingently issuable by Adtalem under the ASR agreement and were included in the diluted earnings per share calculation for the nine months ended March 31, 2023 because the effect would have been dilutive. As of October 14, 2022, the ASR agreement is no longer outstanding. Diluted earnings per share was computed using the treasury stock method for stock awards. 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				Nine Months Ended
	March 31,				March 31,
	2024		2023		2024		2023
Numerator:
Net income (loss):
Continuing operations	$	37,441	$	48,563	$	87,113	$	78,202
Discontinued operations		(620)		(2,694)		245		(7,088)
Net income	$	36,821	$	45,869	$	87,358	$	71,114
Denominator:
Weighted-average basic shares outstanding		38,713		45,125		40,000		45,276
Effect of dilutive stock awards		923		676		874		711
Effect of ASR		—		—		—		102
Weighted-average diluted shares outstanding		39,636		45,801		40,874		46,089
Earnings (loss) per share:
Basic:
Continuing operations	$	0.97	$	1.08	$	2.18	$	1.73
Discontinued operations	$	(0.02)	$	(0.06)	$	0.01	$	(0.16)
Total basic earnings per share	$	0.95	$	1.02	$	2.18	$	1.57
Diluted:
Continuing operations	$	0.94	$	1.06	$	2.13	$	1.70
Discontinued operations	$	(0.02)	$	(0.06)	$	0.01	$	(0.15)
Total diluted earnings per share	$	0.93	$	1.00	$	2.14	$	1.54
Weighted-average antidilutive shares		2		429		141		424