Earnings per Share

6 Months Ended

Jun. 30, 2020

Earnings per Share

Earnings per Share

Note 8 – Earnings per Share

Basic and Diluted (Loss) Earnings per Share

Basic earnings (loss) per share of Class A common stock is computed by dividing net (loss) income available to PetIQ by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted (loss) earnings per share of Class A common stock is computed by dividing net (loss) 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. We use the ‘if-converted’ method for calculating any potential dilutive effect of the Notes on diluted earnings per share, subject to meeting the criteria for using the treasury stock method in future periods.

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 June 30,				Six months ended June 30,
(in 000's, except for per share amounts)		2020	2019			2020	2019
Numerator:
Net (loss) income	$	(1,960)	$	5,918	$	(4,593)	$	8,244
Less: net (loss) income attributable to non-controlling interests		(69)		2,103		(599)		2,818
Net (loss) income attributable to PetIQ, Inc. — basic and diluted		(1,891)		3,815		(3,994)		5,426
Denominator:
Weighted-average shares of Class A common stock outstanding -- basic		24,425		22,365		24,077		22,087
Dilutive effects of stock options that are convertible into Class A common stock		—		215		—		188
Dilutive effect of RSUs		—		17		—		9
Dilutive effect for conversion of Notes		—		—		—		—
Weighted-average shares of Class A common stock outstanding -- diluted		24,425		22,597		24,077		22,284
(Loss) earnings per share of Class A common stock — basic	$	(0.08)	$	0.17	$	(0.17)	$	0.25
(Loss) earnings per share of Class A common stock — diluted	$	(0.08)	$	0.17	$	(0.17)	$	0.24

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 six months ended June 30, 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 and convertible Notes have not been included in the diluted earnings per share calculation for the three and six months ended June 30, 2020, as they have been determined to be anti-dilutive under the treasury stock method. For the three and six months ended June 30, 2019, 1,180 thousand and 1,550 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.