Earnings per Share

9 Months Ended

Sep. 30, 2021

Basic earnings per share of Class A common stock is calculated by dividing the net income attributable to Cactus Inc. during the period by the weighted average number of shares of Class A common stock outstanding during the same period. Diluted earnings per share of Class A common stock is calculated by dividing the net income attributable to Cactus Inc. during that period by the weighted average number of common shares outstanding assuming all potentially dilutive shares were issued.

We use the if-converted method to determine the potential dilutive effect of outstanding CW Units (and corresponding shares of outstanding Class B common stock), the treasury stock method to determine the potential dilutive effect of unvested restricted stock units assuming that the proceeds will be used to purchase shares of Class A common stock and the contingently issuable share method to determine the potential dilutive effect of unvested performance stock units.

The following table summarizes the basic and diluted earnings per share calculations:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Numerator:
Net income attributable to Cactus Inc.—basic	$	12,617	$	6,233	$	34,569	$	31,244
Net income attributable to non-controlling interest (1)	3,400		3,522		9,491		17,271
Net income attributable to Cactus Inc.—diluted (1)	$	16,017	$	9,755	$	44,060	$	48,515
Denominator:
Weighted average Class A shares outstanding—basic	58,248		47,510		54,188		47,406
Effect of dilutive shares (2)	17,834		28,112		21,857		28,021
Weighted average Class A shares outstanding—diluted (2)	76,082		75,622		76,045		75,427

Earnings per Class A share—basic	$	0.22	$	0.13	$	0.64	$	0.66
Earnings per Class A share—diluted (1) (2)	$	0.21	$	0.13	$	0.58	$	0.64

(1)The numerator is adjusted in the calculation of diluted earnings per share under the if-converted method to include net income attributable to the non-controlling interest calculated as its pre-tax income adjusted for a corporate effective tax rate of 28.0% for the three and nine months ended September 30, 2021 and 25.5% for the three and nine months ended September 30, 2020.

(2)Diluted earnings per share for the three and nine months ended September 30, 2021 includes 17.8 million and 21.9 million, respectively, of weighted average shares of Class B common stock outstanding assuming conversion as well as the dilutive effect of restricted stock unit and performance stock unit awards. Diluted earnings per share for the three and nine months ended September 30, 2020 includes 28.1 million and 28.0 million, respectively, of weighted average shares of Class B common stock outstanding assuming conversion as well as the dilutive effect of restricted stock unit awards.