Earnings Per Share

12 Months Ended

Jun. 30, 2023

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. The dilutive effect of equity awards is calculated based on the average stock price for each fiscal period, using the treasury stock method. The shares of Coherent Common Stock issuable upon conversion of outstanding convertible debt, the Mandatory Convertible Preferred Stock and the Series B Convertible Preferred Stock are calculated under the If-Converted method. For the year ended June 30, 2023, diluted earnings (loss) per share excluded the potentially dilutive effect of the performance and restricted shares as well as the shares of Coherent Common Stock issuable upon conversion of outstanding convertible debt, the Mandatory Convertible Preferred Stock and the Series B Convertible Preferred Stock as their effects were anti-dilutive. For the fiscal years ended June 30, 2022 and June 30, 2021, diluted shares outstanding include the dilutive effect of the potential shares of our common stock issuable from stock options, performance and restricted shares and the dilutive effect of the potential shares of our common stock issuable upon conversion of outstanding convertible debt.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings (loss) per share computations for the periods presented ($000):


Year Ended June 30,	2023		2022		2021
($000 except per share)
Numerator
Net earnings (loss)	$	(259,458)	$	234,759	$	297,552
Deduct Series A preferred stock dividends	(27,600)		(27,600)		(27,140)
Deduct Series B dividends and deemed dividends	(116,612)		(40,625)		(10,091)
Basic earnings (loss) available to common shareholders	$	(403,670)	$	166,534	$	260,321

Effect of dilutive securities:
Add back interest on Convertible Notes (net of tax)	$	—	$	2,229	$	12,264



Diluted earnings (loss) available to common shareholders	$	(403,670)	$	168,763	$	272,585

Denominator
Weighted average shares	137,578		106,189		104,151
Effect of dilutive securities
Common stock equivalents	—		3,012		3,552
Convertible Notes	—		7,312		7,331


Diluted weighted average common shares	137,578		116,513		115,034

Basic earnings (loss) per common share	$	(2.93)	$	1.57	$	2.50

Diluted earnings (loss) per common share	$	(2.93)	$	1.45	$	2.37

The following table presents potential shares of common stock excluded from the calculation of diluted net earnings (loss) per share, as their effect would have been antidilutive (in thousands of shares):


Year Ended June 30,	2023	2022	2021
Series A Mandatory Convertible Preferred Stock	10,423	8,915	8,915
Series B Convertible Preferred Stock	26,349	9,162	2,230

Common stock equivalents	2,271	9,611	118

Total anti-dilutive shares	39,043	27,688	11,263