Earnings per Share

6 Months Ended

Jun. 30, 2022

Basic and Diluted 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 income 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)	2022		2021		2022		2021
Numerator:
Net income	$	4,678	$	4,034	$	7,838	$	6,420
Less: net income attributable to non-controlling interests	46		8		75		361
Net income attributable to PetIQ, Inc. — basic and diluted	4,632		4,026		7,763		6,059
Denominator:
Weighted-average shares of Class A common stock outstanding — basic	29,283		28,491		29,223		27,444
Dilutive effects of stock options that are convertible into Class A common stock	32		518		47		470
Dilutive effect of RSUs	14		147		34		145

Weighted-average shares of Class A common stock outstanding — diluted	29,329		29,156		29,304		28,059

Earnings per share of Class A common stock — basic	$	0.16	$	0.14	$	0.27	$	0.22
Earnings per share of Class A common stock — diluted	$	0.16	$	0.14	$	0.26	$	0.22

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.

The computation of dilutive effect of other potential common shares excludes stock options of 1,531 thousand shares and 845 thousand restricted stock units for the three months ended June 30, 2022, as the inclusion under the treasury stock method would have been antidilutive.

The computation of dilutive effect of other potential common shares excludes stock options of 1,531 thousand shares and 803 thousand restricted stock units for the six months ended June 30, 2022, as the inclusion under the treasury stock method would have been antidilutive.

The computation of dilutive effect of other potential common shares excludes stock options of 480 thousand shares and 88 thousand restricted stock units for the three months ended June 30, 2021, as the inclusion under the treasury stock method would have been antidilutive.

The computation of dilutive effect of other potential common shares excludes stock options of 652 thousand shares and 88 thousand restricted stock units for the six months ended June 30, 2021, as the inclusion under the treasury stock method would have been antidilutive.

The dilutive impact of the Convertible Notes have not been included in the dilutive earnings per share calculation for the three and six months ended June 30, 2022 and 2021 as they would be antidilutive.