Earnings Per Share

12 Months Ended

Dec. 31, 2023

EARNINGS PER SHARE

The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the years ended December 31, 2023, 2022 and 2021 (in thousands, except per share data):


	Year Ended December 31,
	2023		2022		2021
Numerator:
Net income	$	120,968	$	105,354	$	70,887
Denominator:
Basic
Weighted average common shares outstanding	49,989		51,502		52,637
Diluted
Stock options (1)	172		487		683
Restricted stock awards	98		141		192
Contingent shares (2)	21		14		—
Performance share units (3)	277		244		211
Diluted weighted average common shares outstanding	50,557		52,388		53,723
Earnings Per Share:
Basic earnings per share	$	2.42	$	2.05	$	1.35
Diluted earnings per share	$	2.39	$	2.01	$	1.32

(1)For the years ended December 31, 2023, 2022 and 2021, a total of 58 thousand, 68 thousand and 23 thousand stock based awards, respectively, were excluded from the calculation of diluted earnings per share as their exercise prices would render them 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 conditions have been met. For further details, refer to Note 18, Business Combinations.

(3)The denominator used in calculating diluted earnings per share did not include 0.2 million, 0.2 million and 0.3 million performance share units for the twelve months ended December 31, 2023, 2022 and 2021 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 years ended December 31, 2023, 2022 and 2021.