Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2023

Summary of Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2023 and 2022 (in thousands, except per share data):


	Three Months Ended March 31,
		2023		2022
Numerator:
Net Income		$	73,160	$	58,127
Denominator:
Basic
Weighted average common shares outstanding		50,367		52,119
Diluted
Stock options (1)		271		619
Restricted stock units and awards (1)		122		217

Contingent shares (2)		2		—
Diluted weighted average common shares outstanding (3)		50,762		52,955
Basic earnings per share		$	1.45	$	1.12
Diluted earnings per share		$	1.44	$	1.10

(1)A total of 80 thousand and 55 thousand shares of stock-based awards were excluded from the calculation of diluted earnings per share for the three months ended March 31, 2023 and 2022, as their effect would be anti-dilutive.

(2)Contingent shares represent additional shares to be issued for purchase price earned by former owners of businesses acquired by us once future considerations have been met. Refer to Note 11, Business Combinations, for further details.

(3)The denominator used in calculating diluted earnings per share did not include 326 thousand and 363 thousand performance share units for both the three months ended March 31, 2023 and 2022, respectively. The performance conditions associated with these performance share units were not met and consequently none of these performance share units were considered as issuable for the three months ended March 31, 2023 and 2022.