Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2019

We have two classes of common stock, Class A common stock and Class B common stock. Other than voting rights, the Class B common stock has the same rights as the Class A common stock and therefore both are treated as the same class of stock for purposes of the earnings per share calculation. Laureate computes basic earnings per share (EPS) by dividing income available to common shareholders by the weighted average number of common shares outstanding for the reporting period. Diluted EPS reflects the potential dilution that would occur if share-based compensation awards, contingently issuable shares, or convertible securities were exercised or converted into common stock. To calculate the diluted EPS, the basic weighted average number of shares is increased by the dilutive effect of stock options, restricted stock, restricted stock units, and contingently issuable shares determined using the treasury stock method, and convertible securities using the if-converted method.

The following tables summarize the computations of basic and diluted earnings per share:



For the three months ended June 30,	2019			2018
Numerator used in basic and diluted earnings per common share for continuing operations:
Income from continuing operations	$	104,500		$	173,881
Net loss attributable to noncontrolling interests	2,315			548
Income from continuing operations attributable to Laureate Education, Inc.	106,815			174,429

Accretion of redemption value of redeemable noncontrolling interests and equity	194			882
Adjusted for: accretion related to noncontrolling interests and equity redeemable at fair value	—			(556		)
Accretion of Series A Preferred Stock	—			(4,650		)
Gain upon conversion of Series A Preferred Stock	—			74,110
Subtotal: accretion of Series A Preferred Stock and other redeemable noncontrolling interests and equity	194			69,786
Net income from continuing operations available to common stockholders for basic earnings per share	107,009			244,215
Adjusted for: accretion of Series A Preferred Stock	—			4,650
Adjusted for: gain upon conversion of Series A Preferred Stock	—			(74,110		)
Net income from continuing operations available to common stockholders for diluted earnings per share	$	107,009		$	174,755

Numerator used in basic and diluted earnings per common share for discontinued operations:
Income from discontinued operations, net of tax	$	33,600		$	38,072
Gain on sales of discontinued operations, net of tax	641,516			12,003
Income attributable to noncontrolling interests	(339		)	(92		)
Net income from discontinued operations for basic and diluted earnings per share	$	674,777		$	49,983

Denominator used in basic and diluted earnings per common share:
Basic weighted average shares outstanding	224,658			214,864
Dilutive effect of Series A Preferred Stock	—			9,135
Dilutive effect of stock options	25			—
Dilutive effect of restricted stock units	263			355
Diluted weighted average shares outstanding	224,946			224,354

Basic earnings per share:
Income from continuing operations	$	0.48		$	1.14
Income from discontinued operations	3.00			0.23
Basic earnings per share	$	3.48		$	1.37
Diluted earnings per share:
Income from continuing operations	$	0.48		$	0.78
Income from discontinued operations	3.00			0.22
Diluted earnings per share	$	3.48		$	1.00



For the six months ended June 30,	2019			2018
Numerator used in basic and diluted earnings (loss) per common share for continuing operations:
(Loss) income from continuing operations	$	(5,814	)	$	8,246
Net income attributable to noncontrolling interests	(416		)	(1,111		)
(Loss) income from continuing operations attributable to Laureate Education, Inc.	(6,230		)	7,135

Accretion of redemption value of redeemable noncontrolling interests and equity	457			806
Adjusted for: accretion related to noncontrolling interests and equity redeemable at fair value	—			(559		)
Accretion of Series A Preferred Stock	—			(61,974		)
Gain upon conversion of Series A Preferred Stock	—			74,110
Subtotal: accretion of other redeemable noncontrolling interests and equity and Series A Preferred Stock, net	457			12,383
Net (loss) income available to common stockholders for basic earnings per share	$	(5,773	)	$	19,518
Adjusted for: accretion of Series A Preferred Stock	—			61,974
Adjusted for: gain upon conversion of Series A Preferred Stock	—			(74,110		)
Net (loss) income from continuing operations available to common stockholders for diluted earnings per share	$	(5,773	)	$	7,382

Numerator used in basic and diluted earnings per common share for discontinued operations:
Income from discontinued operations, net of tax	$	90,174		$	56,925
Gain on sale of discontinued operations, net of tax	889,521			330,330
Income attributable to noncontrolling interests	(630		)	(1,099		)
Net income from discontinued operations for basic and diluted earnings per share	$	979,065		$	386,156

Denominator used in basic and diluted earnings per common share:
Basic weighted average shares outstanding	224,656			201,494
Dilutive effect of Series A Preferred Stock	—			22,564
Dilutive effect of stock options	—			—
Dilutive effect of restricted stock units	—			416
Diluted weighted average shares outstanding	224,656			224,474

Basic earnings per share:
(Loss) income from continuing operations	$	(0.03	)	$	0.09
Income from discontinued operations	4.36			1.92
Basic earnings per share	$	4.33		$	2.01
Diluted earnings per share:
(Loss) income from continuing operations	$	(0.03	)	$	0.03
Income from discontinued operations	4.36			1.72
Diluted earnings per share	$	4.33		$	1.75

The following table summarizes the number of stock options, shares of restricted stock and restricted stock units (RSUs) that were excluded from the diluted EPS calculations because the effect would have been antidilutive:



	For the three months ended June 30,		For the six months ended June 30,
	2019	2018	2019	2018
Stock options	8,846	9,714	8,993	9,779
Restricted stock and RSUs	14	131	915	169