Earnings per Share

9 Months Ended

Dec. 31, 2022

13. Earnings per Share

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 December 31, 2022					Three Months Ended December 31, 2021
	Net income attributable to Class A Stockholders		Weighted-Average Shares	Per share amount		Net income attributable to Class A Stockholders		Weighted-Average Shares	Per share amount
Net income attributable to HLI	$	9,669				$	51,849
Impact of changes in carrying amount of redeemable NCI	2,095					1,308
Basic EPS of Class A common stock	$	11,764	37,025,416	$	0.32	$	53,157	36,902,741	$	1.44
Adjustment to net income:
Assumed vesting of employee awards	5					66
Assumed conversion of Class B and Class C Units	5,058					21,946
Effect of dilutive securities:
Assumed vesting of employee awards			68,129					165,569
Assumed conversion of Class B and Class C Units			16,675,834					16,675,834
Diluted EPS of Class A common stock	$	16,827	53,769,379	$	0.31	$	75,169	53,744,144	$	1.40

	Nine Months Ended December 31, 2022					Nine Months Ended December 31, 2021
	Net income attributable to Class A Stockholders		Weighted-Average Shares	Per share amount		Net income attributable to Class A Stockholders		Weighted-Average Shares	Per share amount
Net income attributable to HLI	$	78,034				$	132,161
Impact of changes in carrying amount of redeemable NCI	3,809					358
Basic EPS of Class A common stock	$	81,843	37,004,657	$	2.21	$	132,519	36,375,797	$	3.64
Adjustment to net income:
Assumed vesting of employee awards	34					156
Assumed conversion of Class B and Class C Units	35,968					60,083
Effect of dilutive securities:
Assumed vesting of employee awards			53,030					138,902
Assumed conversion of Class B and Class C Units			16,675,834					17,192,702
Diluted EPS of Class A common stock	$	117,845	53,733,521	$	2.19	$	192,758	53,707,401	$	3.59

The adjustments to net income for dilutive securities are 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. 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.

The calculation of diluted earnings per share excludes 528,282 Performance Awards for the three and nine months ended December 31, 2022 as the market condition was not achieved as of December 31, 2022.