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 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 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 March 31,
(in 000's, except for per share amounts)		2020	2019
Numerator:
Net (loss) income	$	(2,633)	$	2,326
Less: net (loss) income attributable to non-controlling interests		(530)		715
Net (loss) income attributable to PetIQ, Inc. — basic and diluted		(2,103)		1,611
Denominator:
Weighted-average shares of Class A common stock outstanding -- basic		23,728		21,800
Dilutive effects of stock options that are convertible into Class A common stock		—		171
Dilutive effect of RSUs		—		7
Weighted-average shares of Class A common stock outstanding -- diluted		23,728		21,978

(Loss) earnings per share of Class A common stock — basic	$	(0.09)	$	0.07
(Loss) earnings per share of Class A common stock — diluted	$	(0.09)	$	0.07

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 months ended March 31, 2020 and 2019, 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 months ended March 31, 2020, as they have been determined to be anti-dilutive under the treasury stock method. For the three months ended March 31, 2019, 748 thousand and 30 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.