Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2024

Reconciliation of Basic and Diluted Earnings (Loss) per Share

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)	2024		2023
Numerator:
Net income	$	15,027	$	9,781
Less: net income attributable to non-controlling interests	120		82
Net income attributable to PetIQ, Inc. — basic	14,907		9,699
Plus: interest expense on Convertible Notes	1,688		1,676
Net income attributable to PetIQ, Inc. — diluted	$	16,595	$	11,375
Denominator(1):
Weighted-average shares of Class A common stock outstanding — basic	29,283		29,125
Dilutive effect of share-based compensation awards(2)	650		45
Dilutive effect of conversion of Notes(3)	4,848		6,060
Weighted-average shares of Class A common stock outstanding — diluted	34,781		35,230

Earnings per share of Class A common stock — basic	$	0.51	$	0.33
Earnings per share of Class A common stock — diluted	$	0.48	$	0.32

(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 months ended March 31, 2024, 1,269 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 months ended March 31, 2023, 2,339 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) The dilutive impact of the Notes has been included in the dilutive earnings per share calculation for the three months ended March 31, 2024 and March 31, 2023.