Earnings Per Share

3 Months Ended

Mar. 31, 2023

Basic net income per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share assumes the conversion of all potentially dilutive securities and is calculated by dividing net income by the sum of the weighted average number of shares of common stock outstanding plus all potentially dilutive securities. Dilutive common shares consist primarily of stock options and restricted stock awards.

The following table sets forth the computation of basic and diluted earnings per share:


	Three Months Ended
	March 31, 2023		March 31, 2022
Numerator:	(in thousands, except share and per share data)
Net income	$	36,814	$	18,059
Denominator:
Basic weighted average shares	53,640,598		52,613,232
Effect of dilutive shares related to stock based compensation1	1,314,763		927,137
Effect of dilutive shares related to contingent consideration2	285,277		410,626
Diluted weighted average shares	55,240,638		53,950,995
Earnings per share:
Basic	$	0.69	$	0.34
Dilutive	$	0.67	$	0.33
Anti-dilutive shares:
Shares	120,294		437,636
1 Dilutive shares related to stock options, restricted stock, PSUs and Key Employee Awards (Note 12)
2 Dilutive shares related to contingent shares issued to the former owners of BASX (Note 15)