Earnings per Share

6 Months Ended

Jun. 30, 2023

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 CC 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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net income attributable to Cactus Inc.—basic	$	24,750	$	27,144	$	67,644	$	47,760
Net income attributable to non-controlling interest (1)	—		6,759		13,114		11,779
Net income attributable to Cactus Inc.—diluted (1)	$	24,750	$	33,903	$	80,758	$	59,539
Denominator:
Weighted average Class A shares outstanding—basic	64,566		60,523		64,155		59,909
Effect of dilutive shares (2)	437		15,799		15,357		16,353
Weighted average Class A shares outstanding—diluted (2)	65,003		76,322		79,512		76,262

Earnings per Class A share—basic	$	0.38	$	0.45	$	1.05	$	0.80
Earnings per Class A share—diluted (1)(2)	$	0.38	$	0.44	$	1.02	$	0.78

(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 six months ended June 30, 2023 and 25.0% for the three and six months ended June 30, 2022.

(2)Diluted earnings per share for the three months ended June 30, 2023 excludes 14.9 million weighted average shares of Class B common stock as the effect would be anti-dilutive.