Earnings/(Loss) Per Share

3 Months Ended

Mar. 31, 2023

Basic earnings/(loss) per share is computed by dividing net income/(loss) by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock; however, potential common equivalent shares are excluded if the effect of including these shares would be anti-dilutive. The Company’s two classes of common stock, Class A and Class B non-voting, have equal rights to dividends and income, and therefore, basic and diluted earnings per share are the same for each class of common stock. As of March 31, 2023, the Company did not have any Class B non-voting common stock outstanding.

Diluted earnings per share takes into account the potential conversion of stock options, restricted stock units, and warrants using the treasury stock method and convertible notes using the if-converted method. For the three months ended March 31, 2023, the Company did not exclude any potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. For the three months ended March 31, 2022, the Company excluded 249,781 potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. Since the Company was in a loss position for the three months ended March 31, 2022, diluted net loss per share is the same as basic net loss per share for the period as the inclusion of all potential common shares outstanding would have been anti-dilutive. The Company excluded 969,698 and 1,046,967 shares related to restricted stock units for which the performance metric had yet to be achieved as of March 31, 2023 and 2022, respectively.

The following table sets forth the reconciliation of basic and diluted earnings/(loss) per share:


	Three Months Ended March 31,

	2023		2022
	(in thousands, except share and per share)
Basic earnings/(loss) per share:
Numerator
Net income/(loss)	$	128,720	$	(468,993)
Preferred stock dividends	(10,425)		(10,425)
Net income/(loss) attributable to common stockholders	$	118,295	$	(479,418)
Denominator
Weighted-average shares outstanding	110,943,552		113,894,867
Basic earnings/(loss) per share	$	1.07	$	(4.21)
Diluted earnings/(loss) per share:
Numerator
Net income/(loss)	$	128,720	$	(468,993)
Preferred stock dividends	(10,425)		(10,425)
Net income/(loss) attributable to common stockholders	$	118,295	$	(479,418)
Denominator
Number of shares used in basic computation	110,943,552		113,894,867
Weighted-average effect of dilutive securities	256,444		—
Number of shares used in per share computation	111,199,996		113,894,867
Diluted earnings/(loss) per share	$	1.06	$	(4.21)