Earnings Per Share

9 Months Ended

Sep. 30, 2023

EARNINGS PER SHARE

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Numerator:
Net Income	$	33,682	$	27,470	$	133,705	$	116,852
Denominator:
Basic
Weighted average common shares outstanding	49,838		51,457		50,054		51,827
Diluted
Stock options (1)	148		434		206		523
Restricted stock units and awards (1)	96		118		95		141
Performance share units	277		205		277		205
Contingent shares (2)	12		24		12		24
Diluted weighted average common shares outstanding (3)	50,371		52,238		50,644		52,720
Basic earnings per share	$	0.68	$	0.53	$	2.67	$	2.25
Diluted earnings per share	$	0.67	$	0.53	$	2.64	$	2.22

(1)A total of 60 thousand shares of stock-based awards were excluded from the calculation of diluted earnings per share for nine months ended September 30, 2023, as their effect would be anti-dilutive. A total of 72 thousand shares of stock-based awards were excluded from the calculation of diluted earnings per share for the nine months ended September 30, 2022, as their effect would be anti-dilutive. No stock-based awards were excluded from the calculation of diluted earnings per share for the three months ended September 30, 2023 and 2022, as their effect was 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 187 thousand PSUs for both the three and nine months ended September 30, 2023, and the denominator used in calculating diluted earnings per share did not include 237 thousand PSUs for both the three and nine months ended September 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 nine months ended September 30, 2023 and 2022.