Earnings per Share from Continuing Operations (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of Earnings Per Share from Continuing Operations

The Company allocates earnings to participating securities and computed earnings per share using the two-class method as follows:


	Three Months Ended
	March 31, 2023		April 1, 2022
	(In thousands, except share and per share data)
Computation of earnings per share from continuing operations – basic:
Income from continuing operations attributable to ESAB Corporation(1)	$	32,816	$	57,458
Less: distributed and undistributed earnings allocated to nonvested shares	(237)		—

Income from continuing operations attributable to common stockholders	$	32,579	$	57,458
Weighted-average shares of Common stock outstanding – basic(3)	60,146,348		60,034,311
Income per share from continuing operations – basic	$	0.54	$	0.96

Computation of earnings per share from continuing operations – diluted:



Income from continuing operations attributable to common stockholders	$	32,579	$	57,458
Weighted-average shares of Common stock outstanding – basic(3)	60,146,348		60,034,311
Net effect of potentially dilutive securities(2)	339,878		—
Weighted-average shares of Common stock outstanding – dilution	60,486,226		60,034,311
Net income per share from continuing operations – diluted	$	0.54	$	0.96

(1) Net income from continuing operations attributable to ESAB Corporation for the respective periods is calculated using Net income from continuing operations, less Income attributable to noncontrolling interest, net of taxes, of $1.3 million for the three months ended March 31, 2023, and $1.0 million for the three months ended April 1, 2022, respectively.

(2) Potentially dilutive securities include stock options, performance-based restricted stock units, and non-performance-based restricted stock units.

(3) Prior to the Separation, the Company did not have any publicly-traded common stock or equivalents issued and outstanding. Accordingly, the net income per share for the three months ended April 1, 2022 is calculated based on the 60.0 million shares distributed on the Separation Date.