Earnings Per Share

6 Months Ended

Jun. 30, 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
	June 30, 2024							June 30, 2023
	Income			Shares (a)		Per Share		Income			Shares (a)		Per Share
	(Numerator)			(Denominator)		Amount		(Numerator)			(Denominator)		Amount
Net income	$	57,099						$	14,882
Less: Net income attributable to redeemable noncontrolling interests		—							(2,337	)
Less: Net income attributable to noncontrolling interests		(3,023	)						(102	)
Net income attributable to HCI		54,076							12,443
Less: Income attributable to participating securities		(2,052	)						(427	)
Basic Earnings Per Share:
Income allocated to common stockholders		52,024			10,041	$	5.18		12,016			8,302	$	1.45
Effect of Dilutive Securities:
Stock options		—			298				—			74
Convertible senior notes		1,753			2,142				1,924			2,538
Warrants		—			215				—			7
Diluted Earnings Per Share:
Income available to common stockholders and assumed conversions	$	53,777			12,696	$	4.24	$	13,940			10,921	$	1.28

(a)

Shares in thousands.


	Six Months Ended							Six Months Ended
	June 30, 2024							June 30, 2023
	Income			Shares (a)		Per Share		Income			Shares (a)		Per Share
	(Numerator)			(Denominator)		Amount		(Numerator)			(Denominator)		Amount
Net income	$	114,055						$	32,675
Less: Net income attributable to redeemable noncontrolling interests		(10,149	)						(4,661	)
Less: Net income attributable to noncontrolling interests		(2,219	)						(233	)
Net income attributable to HCI		101,687							27,781
Less: Income attributable to participating securities		(3,243	)						(985	)
Basic Earnings Per Share:
Income allocated to common stockholders		98,444			9,897	$	9.95		26,796			8,290	$	3.23
Effect of Dilutive Securities: *
Stock options		—			290				—			58
Convertible senior notes		3,393			2,212				3,844			2,538
Warrants		—			262				—			—
Diluted Earnings Per Share:
Income available to common stockholders and assumed conversions	$	101,837			12,661	$	8.04	$	30,640			10,886	$	2.81

(a)

Shares in thousands.

* For the six months ended June 30, 2023, warrants were excluded due to anti-dilutive effect.