EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2024

Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period.

For periods of net income, and when the effects are not anti-dilutive, diluted earnings per share is calculated by dividing net income available to common stockholders by the weighted-average number of shares outstanding plus the impact of all potential dilutive common shares, consisting primarily of common stock options, shares to be purchased under our Employee Stock Purchase Plan (“ESPP”), and performance stock units, using the more dilutive of the treasury stock or the two-class method. For periods of net loss, diluted loss per share is calculated similarly to basic loss per share.

Unvested restricted shares and Series A convertible preferred stock shares contain non-forfeitable rights to dividends, and therefore are considered to be participating securities; in periods of net income, the calculation of basic and diluted earnings (loss) per share excludes from the numerator net income (but not net loss) attributable to the unvested restricted shares and the common shares assumed converted from the preferred shares and excludes the impact of those shares from the denominator.

Earnings per share for the three months ended March 31, 2024 and 2023 are calculated for basic and diluted earnings per share as follows:


	Basic				Diluted
(in thousands, except per share amounts)	Three Months Ended March 31,				Three Months Ended March 31,
	2024		2023		2024		2023
Net income available to common shareholders	$	17,801	$	1,033	$	17,801	$	1,033
Earnings allocated to participating securities	(1,805)		(113)		(1,778)		(113)
Net income available to common shareholders	$	15,996	$	920	$	16,023	$	920
Basic Weighted-Average Shares Outstanding	19,099		16,392		19,099		16,392
Dilutive effect of common stock options, ESPP, and performance stock units					323		139
Diluted Weighted-Average Shares Outstanding					19,422		16,531

Earnings per share	$	0.84	$	0.06	$	0.82	$	0.06

The number of anti-dilutive shares, which have been excluded from the computation of diluted earnings per share, was 2.3 million for the three months ended March 31, 2024. The number of anti-dilutive shares, which have been excluded from the computation of diluted earnings per share, was 2.6 million for the three months ended March 31, 2023.