Earnings Per Share

3 Months Ended

Mar. 31, 2024

Note 17 -- Earnings Per Share

U.S. GAAP requires the Company to use the two-class method in computing basic earnings (loss) per share since holders of the Company’s restricted stock have the right to share in dividends, if declared, equally with common stockholders. These participating securities affect the computation of both basic and diluted earnings (loss) per share during periods of net income or loss. For a majority-owned subsidiary, its basic and diluted earnings (loss) per share are first computed separately. Then, the Company’s proportionate share in that majority-owned subsidiary’s earnings is added to the computation of both basic and diluted earnings (loss) per share at a consolidated level.

A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below:


	Three Months Ended							Three Months Ended
	March 31, 2024							March 31, 2023
	Income			Shares (a)		Per Share		Income			Shares (a)		Per Share
	(Numerator)			(Denominator)		Amount		(Numerator)			(Denominator)		Amount
Net income	$	56,956						$	17,793
Less: Net income attributable to redeemable noncontrolling interest		(10,149	)						(2,324	)
Less: Net loss (income) attributable to noncontrolling interests		804							(131	)
Net income attributable to HCI		47,611							15,338
Less: Income attributable to participating securities		(1,218	)						(564	)
Basic Earnings Per Share:
Income allocated to common stockholders		46,393			9,751	$	4.76		14,774			8,278	$	1.78
Effect of Dilutive Securities: *
Stock options		—			280				—			45
Convertible senior notes		1,640			2,282				1,921			2,537
Warrants		—			305				—			—
Diluted Earnings Per Share:
Income available to common stockholders and assumed conversions	$	48,033			12,618	$	3.81	$	16,695			10,860	$	1.54

(a)

Shares in thousands.

* For the three months ended March 31, 2023, warrants were excluded due to anti-dilutive effect.