Earnings (Loss) Per Share

9 Months Ended

Mar. 31, 2023

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 and nine months ended March 31, 2023, 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 and nine months ended March 31, 2023, 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 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 and nine months ended March 31, 2023 and March 31, 2022 ($000):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022			2023		2022
Numerator
Net earnings (loss)	$	2,546	$	49,002		$	(81,224)	$	191,123
Deduct Series A preferred stock dividends	(6,900)		(6,900)			(20,700)		(20,700)
Deduct Series B dividends and deemed dividends	(29,171)		(10,248)			(86,837)		(30,233)
Basic earnings (loss) available to common shareholders	$	(33,525)	$	31,854		$	(188,761)	$	140,190

Effect of dilutive securities:
Add back interest on Convertible Notes (net of tax)	$	—	$	571		$	—	$	1,650

Diluted earnings (loss) available to common shareholders	$	(33,525)	$	32,425		$	(188,761)	$	141,840

Denominator
Weighted average shares	139,113		106,323			136,990		106,079
Effect of dilutive securities:
Common stock equivalents	—		3,296			—		3,001
Convertible Notes	—		7,330			—		7,330


Diluted weighted average common shares	139,113		116,949			136,990		116,410

Basic earnings (loss) per common share	$	(0.24)	$	0.30		$	(1.38)	$	1.32

Diluted earnings (loss) per common share	$	(0.24)	$	0.28		$	(1.38)	$	1.22

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 and nine months ended March 31, 2023 and March 31, 2022 ($000):


	Three Months Ended March 31,		Nine Months Ended March 31,
	2023	2022	2023	2022
Common stock equivalents	2,416	2	2,334	12
Convertible Notes	—	—	1,491	—
Series A Mandatory Convertible Preferred Stock	10,697	8,915	10,331	8,915
Series B Convertible Preferred Stock	26,511	9,217	26,185	9,105
Total anti-dilutive shares	39,624	18,134	40,341	18,032