Note 14 - Earnings Per Share

6 Months Ended

Jun. 30, 2023

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 three and six months ended June 30, 2023 and 2022 under the two-class method (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Net income as reported	$	31,826		$	77,561		$	82,083		$	61,051
Participating basic earnings (a)		(2,942	)		(6,376	)		(7,590	)		(5,169	)
Basic earnings attributable to common stockholders		28,884			77,185			74,493			55,882
Reallocation of participating earnings		46			162			123			124
Diluted net income attributable to common stockholders	$	28,930		$	71,347		$	74,616		$	55,006
Basic weighted average shares outstanding		111,227			103,178			111,227			99,530
Dilutive warrants and unvested stock options		2,592			5,928			3,741			5,191
Dilutive unvested restricted stock		2,159			2,122			2,159			2,122
Diluted weighted average shares outstanding		115,978			111,228			117,127			106,843

(a) 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.