Earnings Per Share

6 Months Ended

Jun. 30, 2023

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2023 and 2022 (in thousands, except per share data):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net Income	$	26,863	$	31,255	$	100,023	$	89,382
Denominator:
Basic
Weighted average common shares outstanding	49,963		51,911		50,164		52,015
Diluted
Stock options (1)	198		508		235		564
Restricted stock units and awards (1)	79		112		95		157
Performance share units	106		—		106		—
Contingent shares (2)	39		—		39		—
Diluted weighted average common shares outstanding (3)	50,385		52,531		50,639		52,736
Basic earnings per share	$	0.54	$	0.60	$	1.99	$	1.72
Diluted earnings per share	$	0.53	$	0.60	$	1.98	$	1.70

(1)A total of 12 thousand and 53 thousand shares of stock-based awards were excluded from the calculation of diluted earnings per share for three and six months ended June 30, 2023, respectively, as their effect would be anti-dilutive. A total of 17 thousand and 86 thousand shares of stock-based awards were excluded from the calculation of diluted earnings per share for three and six months ended June 30, 2022, respectively, 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 220 thousand PSUs for both the three and six months ended June 30, 2023, and the denominator used in calculating diluted earnings per share did not include 360 thousand PSUs for both the three and six months ended June 30, 2022. The performance conditions associated with these performance share units were not met and consequently none of these PSUs were considered as issuable for the three and six months ended June 30, 2023 and 2022.