Earnings (Loss) Per Share

3 Months Ended

Sep. 30, 2022

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

Diluted earnings (loss) per common share is computed by dividing the diluted earnings (loss) 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. For the three months ended September 30, 2022, as the Company was in a net loss position, no dilution was included in the calculation of earnings (loss) per share.

Potentially dilutive shares whose effect would have been anti-dilutive are excluded from the computation of diluted earnings (loss) per common share. For the three months ended September 30, 2022, diluted earnings (loss) per share excluded the potentially dilutive effect of the performance and restricted shares, calculated based on the average stock price for each fiscal period, using the treasury stock method, as well as the shares of Coherent Common Stock issuable upon conversion of outstanding convertible debt, 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 (loss) per share computations for the three months ended September 30, 2022 and September 30, 2021 ($000):


	Three Months Ended September 30,
	2022		2021
Numerator
Net earnings (loss)	$	(38,698)	$	74,464
Deduct Series A preferred stock dividends	(6,900)		(6,900)
Deduct Series B dividends and deemed dividends	(28,677)		(10,182)
Basic earnings (loss) available to common shareholders	$	(74,275)	$	57,382

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

Diluted earnings (loss) available to common shareholders	$	(74,275)	$	57,884

Denominator
Weighted average shares	133,280		105,761
Effect of dilutive securities:
Common stock equivalents	—		2,758
Convertible Notes	—		7,330


Diluted weighted average common shares	133,280		115,849

Basic earnings (loss) per common share	$	(0.56)	$	0.54

Diluted earnings (loss) per common share	$	(0.56)	$	0.50

The following table presents potential shares of Coherent Common Stock excluded from the calculation of diluted earnings (loss) per share as their effect would have been anti-dilutive for the three months ended September 30, 2022 and September 30, 2021 ($000):


	Three Months Ended September 30,
	2022	2021
Common stock equivalents	1,762	30
Convertible Notes	4,474	—
Series A Mandatory Convertible Preferred Stock	9,604	8,915


Series B Convertible Preferred Stock	25,861	8,993
Total anti-dilutive shares	41,701	17,938