Earnings per Share

9 Months Ended

Sep. 30, 2023

Note 6 — Earnings per Share

Basic and Diluted Earnings (Loss) per Share

Basic earnings (loss) per share of Class A common stock is computed by dividing net income (loss) available to PetIQ, Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted earnings (loss) per share of Class A common stock is computed by dividing net income (loss) 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 (loss) 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)	2023		2022		2023		2022
Numerator:
Net income (loss)	$	456	$	(49,571)	$	19,790	$	(41,733)
Less: net income (loss) attributable to non-controlling interests	5		(435)		172		(360)
Net income (loss) attributable to PetIQ, Inc. — basic and diluted	451		(49,136)		19,618		(41,373)


Denominator(1):
Weighted-average shares of Class A common stock outstanding — basic	29,181		29,224		29,116		29,224
Dilutive impact of share-based compensation awards (2)	534		—		270		—
Dilutive effect of conversion of Notes (3)	—		—		—		—
Weighted-average shares of Class A common stock outstanding — diluted	29,715		29,224		29,386		29,224

Income (loss) per share of Class A common stock — basic	$	0.02	$	(1.68)	$	0.67	$	(1.42)
Income (loss) per share of Class A common stock — diluted	$	0.02	$	(1.68)	$	0.67	$	(1.42)

(1) Shares of the Company’s Class B common stock do not share in the earnings 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.

(2) For the three and nine months ended September 30, 2023, 1,367 thousand and 2,142 thousand of outstanding share-based compensation awards were excluded from the computation of diluted earnings per share, as the effect of including those shares would be anti-dilutive. For the three and nine months ended September 30, 2022, 2,571 thousand and 2,194 thousand of outstanding share-based compensation awards were excluded from the computation of diluted earnings per share, as the effect of including those shares would be anti-dilutive.

(3) For the three and nine months ended September 30, 2023 and 2022, 4,848 thousand shares of common stock associated with the assumed conversion of the Notes have been excluded from the computation of diluted earnings per share, as the effect of including those shares would be anti-dilutive.