Note 14 - Earnings Per Share

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 14. Earnings Per Share

The Company uses the two-class method of calculating earnings per share because certain of the Company’s stock-based awards qualify as participating securities.

The Company’s basic earnings per share attributable to common stockholders is computed as (i) net income as reported, (ii) less participating basic earnings (iii) divided by weighted average basic common shares outstanding. The Company’s diluted earnings per share attributable to common stockholders is computed as (i) basic earnings attributable to common stockholders, (ii) plus reallocation of participating earnings (iii) divided by weighted average diluted common shares outstanding.

The following table reconciles the Company’s earnings from operations and earnings attributable to common stockholders to the basic and diluted earnings used to determine the Company’s earnings per share amounts for the years ended December 31, 2022 and 2021 under the two-class method (in thousands):

	Year Ended December 31,						August 22, 2020 through December 31,
	2022			2021			2020
Net income (loss) as reported	$	236,854		$	55,559		$	(16,429	)
Participating basic earnings (a)		(22,991	)		(4,674	)		—
Basic earnings attributable to common stockholders		213,863			50,885			(16,429	)
Reallocation of participating earnings		401			58			—
Diluted net income (loss) attributable to common stockholders	$	214,264		$	50,943		$	(16,429	)
Basic weighted average shares outstanding		104,738			93,127			91,629
Dilutive warrants and unvested stock options		4,304			145			—
Dilutive unvested restricted stock		2,122			1,500			—
Diluted weighted average shares outstanding		111,164			94,772			91,629

(a) Certain unvested restricted stock awarded to outside directors represent participating securities because they participate in nonforfeitable dividends with the common equity holders of the Company. Vested stock options represent participating securities because they participate in dividend equivalents with the common equity holders of the Company. Participating earnings represent the distributed and undistributed earnings of the Company attributable to the participating securities. Certain unvested restricted stock awarded to outside directors, employee members of the Board and certain employees do not represent participating securities because, while they participate in dividends with the common equity holders of the Company, the dividends associated with such unvested restricted stock are forfeitable in connection with the forfeitability of the underlying restricted stock. Unvested stock options do not represent participating securities because, while they participate in dividend equivalents with the common equity holders of the Company, the dividend equivalents associated with unvested stock options are forfeitable in connection with the forfeitability of the underlying stock options.

The calculation for weighted average shares reflects shares outstanding over the reporting period based on the actual number of days the shares were outstanding.