Note 8 – Earnings per Share

Basic and Diluted (Loss) Earnings per Share

Basic earnings per share of Class A common stock is computed by dividing net income available to PetIQ, Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted earnings per share of Class A common stock is computed by dividing net income available to PetIQ, Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities.

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,				Nine months ended September 30,
(in 000's, except for per share amounts)		2019	2018			2019	2018
Numerator:
Net (loss) income	$	(8,796)	$	3,902	$	(552)	$	5,343
Less: net (loss) income attributable to non-controlling interests		(2,906)		1,681		(88)		2,651
Net (loss) income attributable to PetIQ, Inc. — basic and diluted		(5,890)		2,221		(464)		2,692
Denominator:
Weighted-average shares of Class A common stock outstanding -- basic		22,974		16,944		22,387		15,842
Dilutive effects of stock options that are convertible into Class A common stock		—		291		—		122
Dilutive effect of RSUs		—		4		—		1
Weighted-average shares of Class A common stock outstanding -- diluted		22,974		17,239		22,387		15,966

(Loss) earnings per share of Class A common stock — basic	$	(0.26)	$	0.13	$	(0.02)	$	0.17
(Loss) earnings per share of Class A common stock — diluted	$	(0.26)	$	0.13	$	(0.02)	$	0.17

Shares of the Company’s Class B common stock do not share in the earnings or losses of the Company and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been presented.

For the three and nine months ended September 30, 2019 and 2018, all shares of the Company’s Class B common stock have not been included in the diluted earnings per share calculation as they have been determined to be anti-dilutive under the if-converted method, respectively.

Additionally, all stock options and restricted stock units have not been included in the diluted earnings per share calculation for the three and nine months ended September 30, 2019, respectively, as they have been determined to be anti-dilutive under the treasury stock method. For the three and nine months ended September 30, 2018, 974 thousand and 346 thousand, respectively, stock options and restricted stock units have not been included in the diluted earnings per share calculation as they have been determined to be anti-dilutive under the treasury stock method.