Earnings per Share

3 Months Ended

Jun. 30, 2022

Shares of the Company’s Class B common stock do not share in the earnings or losses attributable to HLI, and, therefore, are not participating securities. As a result, a separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been included. Shares of the Company’s Class B common stock are, however, considered potentially dilutive to the Class A common stock because the Class B units to which the Class B common stock corresponds are exchangeable for shares of Class A common stock on a one-for-one basis, at which time the share of Class B common stock is surrendered in exchange for a payment of its par value.

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock:


	Three Months Ended June 30, 2022

		Net income attributable to Class A Stockholders		Weighted-Average Shares	Per share amount

Net income attributable to HLI		$	33,484
Impact of changes in carrying amount of redeemable NCI		380
Basic EPS of Class A common stock		33,864		36,999,561	$	0.92
Adjustment to net income:
Assumed vesting of employee awards		9
Assumed conversion of Class B and Class C Units		15,179
Effect of dilutive securities:
Assumed vesting of employee awards				31,546
Assumed conversion of Class B and Class C Units				16,675,834
Diluted EPS of Class A common stock		$	49,052	53,706,941	$	0.91

	Three Months Ended June 30, 2021

		Net income attributable to Class A Stockholders		Weighted-Average Shares	Per share amount
Net income attributable to HLI		$	28,168
Impact of changes in carrying amount of redeemable NCI		—
Basic EPS of Class A common stock		28,168		36,003,089	$	0.78
Adjustment to net income:
Assumed vesting of employee awards		34

Effect of dilutive securities:
Assumed vesting of employee awards				125,905

Diluted EPS of Class A common stock		$	28,202	36,128,994	$	0.78

The adjustments to net income for dilutive securities is based upon the additional income that would be allocated to HLI for the change in its ownership percentage due to the dilutive securities and adjusted for the incremental income tax expense related to the additional allocated income.

The calculation of diluted earnings per share exclude 17,553,234 outstanding Class B and Class C units of HLA for the three months ended June 30, 2021, which are exchangeable into Class A common stock under the “if-converted” method, because the inclusion of such shares would be antidilutive. Net income (loss) recorded by HLI on a standalone basis will determine if the Class B and Class C units are dilutive or antidilutive in each respective period.