Net Income Per Share

6 Months Ended

Jun. 30, 2022

Net Income Per Share

Net Income Per Share

8. Net Income Per Share

Grants of restricted stock and restricted stock units (“RSUs”) of the Company in share-based payment transactions are considered participating securities prior to vesting and, therefore, are considered in computing basic earnings per share under the two-class method. The two-class method is an earnings allocation method for calculating earnings per share when a company’s capital structure includes either two or more classes of common stock or common stock and participating securities. Earnings per basic share under the two-class method is calculated based on dividends declared on common shares and other participating securities (“distributed earnings”) and the rights of participating securities in any undistributed earnings, which represents net income remaining after deduction of dividends accruing during the period. The undistributed earnings are allocated to all outstanding common shares and participating securities based on the relative percentage of each security to the total number of outstanding participating securities. Earnings per basic share represents the summation of the distributed and undistributed earnings per share class divided by the total number of shares.

Through June 30, 2022, all of the Company’s participating securities received dividends or dividend equivalents at an equal dividend rate per share or unit. As a result, distributions to participating securities for the three and six months ended June 30, 2022 and 2021 have been included in net income attributable to common stockholders to calculate net income per basic and diluted share.

The 103,742 and 304,348 shares necessary to settle the Exchangeable Senior Notes on the if-exchanged method basis were dilutive for the three and six months ended June 30, 2022, respectively, and were included in the computation of diluted earnings per share. The 2,182,691 shares necessary to settle the Exchangeable Senior Notes on the if-exchanged method basis were dilutive for the three and six months ended June 30, 2021, and were included in the computation of diluted earnings per share.

For the three and six months ended June 30, 2022 and 2021, as the performance thresholds for vesting of the performance share units (“PSUs”) were not met as measured as of the respective dates, they were excluded from the calculation of weighted average common shares outstanding – diluted for all periods presented (see Note 10 for further discussion of PSUs).

Computations of net income per basic and diluted share (in thousands, except share and per share data) were as follows:

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net income	$	40,214	$	29,339	$	75,264	$	55,266
Preferred stock dividends		(338)		(338)		(676)		(676)
Distribution to participating securities		(207)		(137)		(409)		(263)
Net income attributable to common stockholders used to compute net income per share - basic		39,669		28,864		74,179		54,327
Dilutive effect of Exchangeable Senior Notes		68		1,879		402		3,752
Net income attributable to common stockholders used to compute net income per share - diluted	$	39,737	$	30,743	$	74,581	$	58,079
Weighted-average common shares outstanding:
Basic		27,850,561		23,889,761		26,741,568		23,889,580
Restricted stock and RSUs		82,387		96,230		113,858		94,223
PSUs		—		—		—		—
Dilutive effect of Exchangeable Senior Notes		103,742		2,182,691		304,348		2,182,691
Diluted		28,036,690		26,168,682		27,159,774		26,166,494
Net income attributable to common stockholders per share:
Basic	$	1.42	$	1.21	$	2.77	$	2.27
Diluted	$	1.42	$	1.17	$	2.75	$	2.22