Earnings per Share

6 Months Ended

Mar. 31, 2023

The Company presents basic and diluted earnings per share (“EPS”) using the two-class method, which requires all outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends and therefore participate in undistributed earnings with common stockholders be included in computing earnings per share. Under the two-class method, net income is reduced by the amount of dividends declared in the period for each class of common stock and participating security. The remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends. Restricted stock awards granted to certain employees and directors contain non-forfeitable rights to dividends at the same rate as common stock and are considered participating securities. Basic EPS has been computed by dividing net income by the weighted-average number of common shares outstanding.

The following is a reconciliation of the numerator and denominator of the diluted earnings per share computations for the periods presented below.


	Three Months Ended March 31,				Six Months Ended March 31,
(in millions, except share amounts)	2023		2022		2023		2022
Numerator:
Net income	$	41.7	$	64.0	$	118.3	$	105.7
Less: Allocation to participating securities	(1.5)		(1.8)		(4.0)		(3.1)
Net income allocated to common stockholders	$	40.2	$	62.2	$	114.3	$	102.6






Denominator:
Weighted average number of:
Common shares outstanding	19,930,027		19,573,871		19,850,052		19,477,540
Dilutive potential common shares outstanding:
Share-based awards	691,167		438,838		703,861		452,507
Diluted weighted-average common shares	20,621,194		20,012,709		20,553,913		19,930,047

The dilutive effect of share-based awards is reflected in diluted net income per share by applying the treasury stock method, which includes consideration of unamortized share-based compensation expense.

Options to purchase 123,372 and 468,763 shares of common stock for the three months ended March 31, 2023 and 2022, respectively, were excluded from the calculation of diluted earnings per share as they would have been anti-dilutive. Options to purchase 181,396 and 411,145 shares of common stock for the six months ended March 31, 2023 and 2022, respectively, were excluded from the calculation of diluted earnings per share as they would have been anti-dilutive.