Earnings (Loss) Per Share

6 Months Ended

Dec. 31, 2022

Basic earnings (loss) per common share is computed by dividing net earnings (loss) available to common shareholders by the weighted-average number of shares of common stock outstanding during the period.

Diluted earnings (loss) per common share is computed by dividing the diluted earnings (loss) available to common shareholders by the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period. For the three and six months ended December 31, 2022, as the Company was in a net loss position, no dilution was included in the calculation of earnings (loss) per share.

Potentially dilutive shares whose effect would have been anti-dilutive are excluded from the computation of diluted earnings (loss) per common share. For the three and six months ended December 31, 2022, diluted earnings (loss) per share excluded the potentially dilutive effect of the performance and restricted shares, calculated based on the average stock price for each fiscal period, using the treasury stock method, as well as the shares of Coherent Common Stock issuable upon conversion of outstanding convertible debt, the Series A Mandatory Convertible Preferred Stock and the Series B Convertible Preferred Stock (under the If-Converted method), as their effects were anti-dilutive.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings (loss) per share computations for the three and six months ended December 31, 2022 and December 31, 2021 ($000):


	Three Months Ended December 31,				Six Months Ended December 31,
	2022		2021			2022		2021
Numerator
Net earnings (loss)	$	(45,072)	$	67,657		$	(83,770)	$	142,121
Deduct Series A preferred stock dividends	(6,900)		(6,900)			(13,800)		(13,800)
Deduct Series B dividends and deemed dividends	(28,989)		(9,803)			(57,666)		(19,985)
Basic earnings (loss) available to common shareholders	$	(80,961)	$	50,954		$	(155,236)	$	108,336

Effect of dilutive securities:
Add back interest on Convertible Notes (net of tax)	$	—	$	577		$	—	$	1,079

Diluted earnings (loss) available to common shareholders	$	(80,961)	$	51,531		$	(155,236)	$	109,415

Denominator
Weighted average shares	138,623		106,158			135,951		105,960
Effect of dilutive securities:
Common stock equivalents	—		2,952			—		2,854
Convertible Notes	—		7,330			—		7,330


Diluted weighted average common shares	138,623		116,440			135,951		116,144

Basic earnings (loss) per common share	$	(0.58)	$	0.48		$	(1.14)	$	1.02

Diluted earnings (loss) per common share	$	(0.58)	$	0.44		$	(1.14)	$	0.94

The following table presents potential shares of Coherent Common Stock excluded from the calculation of diluted earnings (loss) per share as their effect would have been anti-dilutive for the three and six months ended December 31, 2022 and December 31, 2021 ($000):


	Three Months Ended December 31,		Six Months Ended December 31,
	2022	2021	2022	2021
Common stock equivalents	2,827	2	2,295	16
Convertible Notes	—	—	2,237	—
Series A Mandatory Convertible Preferred Stock	10,697	8,915	10,149	8,915


Series B Convertible Preferred Stock	26,184	9,105	26,022	9,049
Total anti-dilutive shares	39,708	18,022	40,703	17,980