EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2019

13. EARNINGS PER SHARE

The Company’s net income (loss) and weighted average shares outstanding for the three and nine months ended September 30, 2019 and 2018 consist of the following:



	Three Months Ended September 30,				Nine Months Ended September 30,
($ in thousands except share amounts)	2019		2018		2019		2018

Basic Net income (loss) available for Class A common shareholders	$	27,576	$	66,630	$	81,996	$	155,911
Diluted Net income (loss) available for Class A common shareholders	$	27,576	$	74,038	$	81,996	$	177,875
Weighted average shares outstanding
Basic	106,004,152		96,935,986		105,264,752		96,317,513
Diluted	106,603,713		110,650,253		106,232,581		110,482,991

The calculation of basic and diluted net income (loss) per share amounts for the three and nine months ended September 30, 2019 and 2018 are described and presented below.

Basic Net Income (Loss) per Share

Numerator: utilizes net income (loss) available for Class A common shareholders for the three and nine months ended September 30, 2019 and 2018, respectively.

Denominator: utilizes the weighted average shares of Class A common stock for the three and nine months ended September 30, 2019 and 2018, respectively.

Diluted Net Income (Loss) per Share

Numerator: utilizes net income (loss) available for Class A common shareholders for the three and nine months ended September 30, 2019 and 2018, respectively, for the basic net income (loss) per share calculation described above, adding net income (loss) amounts attributable to the noncontrolling interest in the Operating Partnership using the as-if converted method for the Class B common shareholders while adjusting for additional corporate income tax expense (benefit) for the described net income (loss) add-back.

Denominator: utilizes the weighted average number of shares of Class A common stock for the three and nine months ended September 30, 2019 and 2018, respectively, for the basic net income (loss) per share calculation described above adding the dilutive effect of shares issuable relating to Operating Partnership exchangeable interests and the incremental shares of unvested Class A restricted stock using the treasury method.



	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands except share amounts)	2019		2018			2019		2018

Basic Net Income (Loss) Per Share of Class A Common Stock
Numerator:
Net income (loss) attributable to Class A common shareholders	$	27,576	$	66,630		$	81,996	$	155,911
Denominator:
Weighted average number of shares of Class A common stock outstanding	106,004,152		96,935,986			105,264,752		96,317,513
Basic net income (loss) per share of Class A common stock	$	0.26	$	0.69		$	0.78	$	1.62

Diluted Net Income (Loss) Per Share of Class A Common Stock
Numerator:
Net income (loss) attributable to Class A common shareholders	$	27,576	$	66,630		$	81,996	$	155,911
Add (deduct) - dilutive effect of:
Amounts attributable to operating partnership’s share of Ladder Capital Corp net income (loss)	—		8,991			—		22,786
Additional corporate tax (expense) benefit	—		(1,583		)	—		(822		)
Diluted net income (loss) attributable to Class A common shareholders	27,576		74,038			81,996		177,875
Denominator:
Basic weighted average number of shares of Class A common stock outstanding	106,004,152		96,935,986			105,264,752		96,317,513
Add - dilutive effect of:
Shares issuable relating to converted Class B common shareholders	—		13,202,202			—		13,800,597
Incremental shares of unvested Class A restricted stock	599,561		512,065			967,829		364,881
Diluted weighted average number of shares of Class A common stock outstanding	106,603,713		110,650,253			106,232,581		110,482,991
Diluted net income (loss) per share of Class A common stock	$	0.26	$	0.67		$	0.77	$	1.61


(1)	For three and nine months ended September 30, 2019, shares issuable relating to converted Class B common shareholders are excluded from the calculation of diluted EPS as the inclusion of such potential common shares in the calculation would be anti-dilutive.

The shares of Class B common stock do not share in the earnings of Ladder Capital Corp and are, therefore, not participating securities. Accordingly, basic and diluted net income (loss) per share of Class B common stock has not been presented, although the assumed conversion of Class B common stock has been included in the presented diluted net income (loss) per share of Class A common stock.