Income (Loss) Per Share

9 Months Ended

Sep. 30, 2022

Note 14. Income (Loss) Per Share

The components of basic and diluted loss per share are as follows:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands, except per share data)	2022			2021			2022			2021
Net income (loss) attributable to Viad	$	38,121		$	15,067		$	28,959		$	(70,111	)
Less: Allocation to participating securities		(9,368	)		(3,141	)		(5,991	)		—
Convertible preferred stock dividends paid in cash		(1,950	)		(1,950	)		(5,850	)		(1,950	)
Convertible preferred stock dividends paid in kind		—			—			—			(3,821	)
Adjustment to the redemption value of redeemable noncontrolling interest		—			(488	)		(763	)		(1,091	)
Net income (loss) allocated to Viad common stockholders (basic)	$	26,803		$	9,488		$	16,355		$	(76,973	)
Add: Allocation to participating securities		94			36			46			—
Net income (loss) allocated to Viad common stockholders (diluted)	$	26,897		$	9,524		$	16,401		$	(76,973	)

Basic weighted-average outstanding common shares		20,612			20,420			20,567			20,396
Additional dilutive shares related to share-based compensation		277			322			214			—
Diluted weighted-average outstanding shares		20,889			20,742			20,781			20,396
Income (loss) per share:
Basic income (loss) attributable to Viad common stockholders	$	1.30		$	0.46		$	0.80		$	(3.77	)
Diluted income (loss) attributable to Viad common stockholders(1)	$	1.29		$	0.46		$	0.79		$	(3.77	)

(1)

Diluted loss per share amount cannot exceed basic loss per share.

Diluted loss per common share is calculated using the more dilutive of the two-class method or if-converted method. The two-class method uses net income (loss) available to common stockholders and assumes conversion of all potential shares other than the participating securities. The if-converted method uses net income (loss) available to common stockholders and assumes conversion of all potential shares including the participating securities. Dilutive potential common shares include outstanding stock options, unvested restricted share units and convertible preferred stock. We apply the two-class method in calculating income (loss) per common share as unvested share-based payment awards that contain nonforfeitable rights to dividends and preferred stock are considered participating securities. Accordingly, such securities are included in the earnings allocation in calculating income (loss) per share. The adjustment to the carrying value of the redeemable noncontrolling interest is reflected in income (loss) per common share.

We excluded the following weighted-average potential common shares from the calculations of diluted net income (loss) per common share during the applicable periods because their inclusion would have been anti-dilutive:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2022		2021		2022		2021
Convertible preferred stock		—		—		—		6,584
Unvested restricted share-based awards		2		3		29		173
Unvested performance share-based awards		—		—		11		28
Stock options		138		138		216		219