Net Income Per Common Share

6 Months Ended

Jun. 30, 2023

A summary of net income per common share is presented below:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share amounts)	2023		2022		2023		2022
Net income	$	94,131	$	43,058	$	91,324	$	86,020

Basic weighted-average common shares outstanding	68,371		68,674		68,062		68,343
Effect of dilutive stock options	399		443		391		441
Effect of dilutive restricted stock	1,447		1,679		1,504		1,628
Effect of convertible debt instrument	797		—		—		—
Diluted weighted-average common shares outstanding	71,014		70,796		69,957		70,412

Basic income per common share	$	1.38	$	0.63	$	1.34	$	1.26
Diluted income per common share	$	1.33	$	0.61	$	1.31	$	1.22

Antidilutive securities excluded from diluted net income per common share	349		268		389		196

Impact of the Notes

The Company considered whether the Notes are participating securities through the two-class method. The Company determined that if a cash dividend is paid that is greater than the then stock price, the holder of Notes will receive cash on an if-converted basis.

While this feature is considered to be a participating right; basic earnings per share is only impacted if the Company’s earnings exceeds the current share price, regardless of whether such dividend is declared. During the six months ended June 30, 2023 and 2022, no such dividend was declared. In addition, the Company is required to settle the principal amount of the Notes in cash upon conversion, and therefore, the Company uses the if-converted method for calculating any potential dilutive effect of the conversion option on diluted net income per share, if applicable, unless the application of the two-class method is dilutive. The conversion option will have a dilutive impact on net income per share of Common Stock when the average price per share of the Company's common stock for a given period exceeds the conversion price of the Notes of $79.81 per share. During the three months ended June 30, 2023, the average price per share of the Company’s Common Stock exceeded the conversion price of the Notes. During the six months ended June 30, 2023, the average price per share of the Company's Common Stock was below the conversion price of the Notes.