Stockholders' Equity and Earnings per Share

6 Months Ended

Jun. 30, 2021

Stockholders' Equity and Members' Equity

Stockholders' Equity and Earnings per Share

Note 5 - Stockholders’ Equity and Earnings per Share

Stockholders’ Equity

The Company is authorized to issue 500,000,000 shares of common stock with a par value of $0.001 per share and 100,000,000 shares of preferred stock with a par value of $0.001 per share. Holders of our common stock are entitled to one vote for each share. As of June 30, 2021 and December 31, 2020, there were 132,634,672 and 132,532,383 shares of common stock issued and outstanding, respectively, and no shares of preferred stock issued and outstanding.

As of June 30, 2021 and December 31, 2020 there were 41.7 million public warrants outstanding to acquire one-fourth of a share of common stock at a price of $2.875 (the “Public Warrants”), and 5.2 million warrants outstanding to acquire one share of our common stock at a price of $11.50 per share (the “Private Placement Warrants”). In the aggregate, we have outstanding warrants to purchase approximately 15.6 million shares of common stock at a price of $11.50 per whole share. Settlement of outstanding warrants will be in shares of our common stock unless we elect solely in our discretion to settle warrants we have called for redemption in cash, and subject to customary adjustment in the event of business combinations and certain tender offers.

The liability for the Private Placement Warrants was $3.7 million as of June 30, 2021 and is included in accounts payable and accrued liabilities in the condensed consolidated balance sheet. Refer to "Correction of Immaterial Error" in Note 2 for additional details on the accounting classification of the Private Placement Warrants.

The fair value of the Private Placement Warrant Liability was estimated using a lattice model in accordance with ASC 820, Fair Value, using the assumptions noted below in the following table. Expected volatility is based on the historical volatility of traded prices of Public Warrants. The risk-free interest rate is based on the US Treasury Constant Maturity curve, commensurate with the time to expiry of warrants.

	As of June 30, 2021
Expected volatility		23.0	%
Expected dividend yield		7.4	%
Expected life (in years)		3.38
Risk-free interest rate		0.5	%

Earnings per Share

The table below presents the computation of basic and diluted net income per share of common stock for the periods presented:

	Three Months Ended				Six Months Ended
(dollars in thousands, except share and per share data):	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Net income	$	18,252	$	15,844	$	38,633	$	42,313
Basic weighted-average shares of common stock outstanding		132,585,116		132,165,005		132,567,768		132,120,290
Dilutive effect of share-based compensation		61,273		—		68,656		—
Diluted weighted-average shares of common stock outstanding		132,646,389		132,165,005		132,636,425		132,120,290
Basic earnings per share	$	0.14	$	0.12	$	0.29	$	0.32
Diluted earnings per share	$	0.14	$	0.12	$	0.29	$	0.32

For the periods presented, the following table reconciles the denominators used in the basic and diluted earnings per share calculations:

	Three Months Ended				Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Denominator for basic earnings per share calculation		132,585,116		132,165,005		132,567,768	$	132,120,290
Effect of dilutive securities:
Unvested restricted stock units		61,273		—		68,656		—
Denominator for diluted earnings per share calculation		132,646,389		132,165,005		132,636,424		132,120,290

For the periods presented, the following stock equivalents were excluded from the calculations of diluted earnings per share because their effect would have been antidilutive:

	Three Months Ended				Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Weighted-average restricted stock units outstanding		596,978		792,480		539,645		642,185
Effect of dilutive securities:
Unexercised public and private warrants		15,604,304		15,604,329		15,604,304		15,604,329
Total stock equivalents		16,201,282		16,396,809		16,143,949		16,246,514