Net Income Per Common Share

9 Months Ended

Sep. 30, 2023

NOTE 7. NET INCOME PER COMMON SHARE

Basic earnings per share (“EPS”) attributable to PGT Innovations, Inc. common stockholders for the nine months ended September 30, 2023, and the three and nine months ended October 1, 2022, is computed using the two-class method by dividing net income attributable to common shareholders, after deducting the redemption adjustment related to the redeemable noncontrolling interest, by the average number of common shares outstanding during the period. Diluted EPS attributable to PGT Innovations, Inc. common stockholders for the nine months ended September 30, 2023, and the three and nine months ended October 1, 2022, is computed using the two-class method by dividing net income attributable to common shareholders, after deducting the redemption adjustment related to the redeemable noncontrolling interest, by the average number of common shares outstanding, including the dilutive effect of common stock equivalents computed using the treasury stock method and the average share price during the period.

Basic EPS for the three months ended September 30, 2023, is computed by dividing net income attributable to common shareholders by the average number of common shares outstanding during the period. Diluted EPS for the three months ended September 30, 2023, is computed by dividing net income attributable to common shareholders by the average number of common shares outstanding, including the dilutive effect of common stock equivalents computed using the treasury stock method and the average share price during the period.

Anti-dilutive securities excluded from the calculation of weighted average shares outstanding for the three and nine months ended September 30, 2023 and October 1, 2022 were insignificant.

The table below presents the calculation of EPS and a reconciliation of weighted average common shares used in the calculation of basic and diluted EPS:


	Three Months Ended					Nine Months Ended
	September 30,		October 1,			September 30,			October 1,
	2023		2022			2023			2022
	(in thousands, except per share amounts)
Net income	$	39,207	$	30,414		$	105,388		$	90,705
Less: Net income attributable to RNCI		—		(373	)		(1,101	)		(1,334	)
Net income attributable to the Company		39,207		30,041			104,287			89,371
Decrease (increase) in redemption value of RNCI		—		271			(1,637	)		(1,514	)
Net income attributable to common shareholders	$	39,207	$	30,312		$	102,650		$	87,857

Weighted-average number of common shares outstanding - Basic		58,012		59,964			58,796			59,908
Add: Dilutive shares from equity plans		279		438			296			293

Weighted-average number of common shares outstanding - Diluted		58,291		60,402			59,092			60,201

Net income per common share attributable to common shareholders:
Basic	$	0.68	$	0.51		$	1.75		$	1.47
Diluted	$	0.67	$	0.50		$	1.74		$	1.46