Earnings per Share

3 Months Ended

Mar. 31, 2022

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 March 31,
	2022		2021
Numerator:
Net income attributable to Cactus Inc.—basic	$	20,616	$	11,559
Net income attributable to non-controlling interest (1)	4,953		2,874
Net income attributable to Cactus Inc.—diluted (1)	$	25,569	$	14,433
Denominator:
Weighted average Class A shares outstanding—basic	59,288		49,166
Effect of dilutive shares	16,874		26,608
Weighted average Class A shares outstanding—diluted	76,162		75,774

Earnings per Class A share—basic	$	0.35	$	0.24
Earnings per Class A share—diluted (1)	$	0.34	$	0.19

(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 26.0% for the three months ended March 31, 2022 and 25.0% for the three months ended March 31, 2021.