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Earnings Per Share
 6 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
Earnings Per Share

12. Earnings Per Share

 

The Company calculates earnings per share using a dual presentation of basic and diluted earnings per share. Basic earnings per share is calculated by dividing net income (loss) attributable to stockholders of the Company by the weighted-average shares of common stock outstanding without the consideration for potential dilutive shares of common stock. Diluted earnings per share represents basic earnings per share adjusted to include the potentially dilutive effect of performance stock units, restricted stock units, public and private placement warrants, the employee stock purchase plan and stock options. Diluted earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding and the potential dilutive shares of common stock for the period determined using the treasury stock method. During periods of net loss, diluted loss per share is equal to basic loss per share because the antidilutive effect of potential common shares is disregarded.

The following is a reconciliation of basic and diluted net earnings per common share:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

(in thousands, except share and earnings per share data)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

Basic earnings per share computation:

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to stockholders of
     Advantage Solutions Inc.

 

$

3,371

 

 

$

6,121

 

 

$

22,336

 

 

$

6,005

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares - basic

 

 

318,418,746

 

 

 

318,464,596

 

 

 

318,103,452

 

 

 

318,035,355

 

 

Basic earnings per common share

 

$

0.01

 

 

$

0.02

 

 

$

0.07

 

 

$

0.02

 

 

Diluted earnings per share computation:

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to stockholders of
     Advantage Solutions Inc.

 

$

3,371

 

 

$

6,121

 

 

$

22,336

 

 

$

6,005

 

 

Change in fair value of warrant liability

 

 

—

 

 

 

(7,059

)

 

 

—

 

 

$

(1,553

)

 

Numerator for diluted earnings per share

 

$

3,371

 

 

$

(938

)

 

$

22,336

 

 

$

4,452

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

318,418,746

 

 

 

318,464,596

 

 

 

318,103,452

 

 

 

318,035,355

 

 

Performance and Restricted Stock Units

 

 

99,902

 

 

 

3,457,299

 

 

 

444,169

 

 

 

3,207,047

 

 

Warrants

 

 

—

 

 

 

1,276,669

 

 

 

—

 

 

 

638,335

 

 

Employee stock purchase plan and stock options

 

 

596,217

 

 

 

95,709

 

 

 

372,104

 

 

 

78,216

 

 

Weighted average common shares - diluted

 

 

319,114,865

 

 

 

323,294,273

 

 

 

318,919,725

 

 

 

321,958,953

 

 

Diluted earnings per common share

 

$

0.01

 

 

$

0.00

 

 

$

0.07

 

 

$

0.01

 

 

 

The Company had 18,578,321 warrants to purchase Class A common stock at $11.50 per share outstanding at June 30, 2022, which have been excluded in the calculation of diluted earnings per common share as the weighted average market price of the common stock during the three and six months ended June 30, 2022 did not exceed the exercise price of the warrants. The Company had 18,578,325 warrants to purchase Class A common stock at $11.50 per share outstanding at June 30, 2021.