Earnings Per Share

3 Months Ended

Sep. 30, 2021

Basic earnings per common share is computed by dividing net earnings available to common shareholders by the weighted-average number of shares of common stock outstanding during the period.

Diluted earnings per common share is computed by dividing the diluted earnings available to common shareholders by the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period. The dilutive effect of equity awards is calculated based on the average stock price for each fiscal period, using the treasury stock method. For the three months ended September 30, 2021, diluted shares outstanding include the dilutive effect of the potential shares II-VI Common Stock issuable from stock options, performance and restricted shares, as well as the shares of II-VI Common Stock issuable upon conversion of outstanding convertible debt.

Potentially dilutive shares whose effect would have been antidilutive are excluded from the computation of diluted earnings per common share. For the three months ended September 30, 2021, diluted earnings per share excluded the potentially dilutive effect of the Series A Mandatory Convertible Preferred Stock and the Series B Convertible Preferred Stock (under the If-Converted method), as their effects were anti-dilutive.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the periods presented ($000):


	Three Months Ended September 30,
	2021		2020
Numerator
Net earnings	$	74,464	$	46,266
Deduct Series A preferred stock dividends	(6,900)		(6,440)


Deduct Series B dividends and deemed dividends	(10,182)		—
Basic earnings available to common shareholders	$	57,382	$	39,826

Effect of dilutive securities:
Add back interest on Convertible Senior Notes Due 2022 (net of tax)	$	502	$	—

Diluted earnings available to common shareholders	$	57,884	$	39,826

Denominator
Weighted average shares	105,761		102,809
Effect of dilutive securities:
Common stock equivalents	2,758		2,438
0.25% Convertible Senior Notes due 2022	7,330		—

Diluted weighted average common shares	115,849		105,247

Basic earnings per common share	$	0.54	$	0.39

Diluted earnings per common share	$	0.50	$	0.38

The following table presents potential shares of II-VI Common Stock excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive (000):


	Three Months Ended September 30,
	2021	2020
Series A Mandatory Convertible Preferred Stock	8,915	10,425
0.25% Convertible Senior Notes due 2022	—	7,331
Common stock equivalents	30	430
0.50% Finisar Convertible Notes	—	75
Series B Redeemable Preferred Stock	8,993	—
Total anti-dilutive shares	17,938	18,261