Earnings per Share

6 Months Ended

Sep. 30, 2023

12. 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 September 30, 2023					Three Months Ended September 30, 2022
	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	$	41,994				$	34,881
Impact of changes in carrying amount of redeemable NCI	—					1,333
Basic EPS of Class A common stock	$	41,994	37,718,210	$	1.11	$	36,214	37,009,309	$	0.98
Adjustment to net income:
Assumed vesting of employee awards	44					17
Assumed conversion of Class B and Class C Units	17,824					15,825
Effect of dilutive securities:
Assumed vesting of employee awards			133,775					60,790
Assumed conversion of Class B and Class C Units			16,089,097					16,675,834
Diluted EPS of Class A common stock	$	59,862	53,941,082	$	1.11	$	52,056	53,745,933	$	0.97

	Six Months Ended September 30, 2023					Six Months Ended September 30, 2022
	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	$	72,992				$	68,365
Impact of changes in carrying amount of redeemable NCI	—					1,713
Basic EPS of Class A common stock	$	72,992	37,713,038	$	1.94	$	70,078	37,000,150	$	1.89
Adjustment to net income:
Assumed vesting of employee awards	53					9
Assumed conversion of Class B and Class C Units	30,177					31,007
Effect of dilutive securities:
Assumed vesting of employee awards			94,622					48,816
Assumed conversion of Class B and Class C Units			16,089,097					16,675,834
Diluted EPS of Class A common stock	$	103,222	53,896,757	$	1.92	$	101,094	53,724,800	$	1.88

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 508,716 shares underlying performance awards for the three and six months ended September 30, 2023 as the market condition was not achieved as of September 30, 2023.