Earnings per Share

9 Months Ended

Sep. 30, 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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Numerator:
Net income attributable to Cactus Inc.—basic	$	31,425	$	12,617	$	79,185	$	34,569
Net income attributable to non-controlling interest (1)	—		3,400		19,686		9,491
Net income attributable to Cactus Inc.—diluted (1)	$	31,425	$	16,017	$	98,871	$	44,060
Denominator:
Weighted average Class A shares outstanding—basic	60,665		58,248		60,164		54,188
Effect of dilutive shares (2)	441		17,834		16,132		21,857
Weighted average Class A shares outstanding—diluted (2)	61,106		76,082		76,296		76,045

Earnings per Class A share—basic	$	0.52	$	0.22	$	1.32	$	0.64
Earnings per Class A share—diluted (1),(2)	$	0.51	$	0.21	$	1.30	$	0.58

(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 25.0% for the nine months ended September 30, 2022 and 28.0% for the three and nine months ended September 30, 2021.

(2)Diluted earnings per share for the three months ended September 30, 2022 excludes 15.2 million weighted average shares of Class B common stock as the effect would be anti-dilutive.