Earnings Per Share

6 Months Ended

Jun. 30, 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 for the three and six months ended June 30, 2023 and 2022:


	Three Months Ended				Six Months Ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Numerator:	(in thousands, except share and per share data)
Net income	$	45,682	$	15,946	$	82,496	$	34,005
Denominator:
Basic weighted average shares	54,293,127		53,095,286		54,175,682		52,992,439
Effect of dilutive shares related to stock based compensation1	1,353,260		566,590		1,334,800		747,998
Effect of dilutive shares related to contingent consideration2	—		—		141,850		204,179
Diluted weighted average shares	55,646,387		53,661,876		55,652,332		53,944,616
Earnings per share:
Basic	$	0.84	$	0.30	$	1.52	$	0.64
Dilutive	$	0.82	$	0.30	$	1.48	$	0.63
Anti-dilutive shares:
Shares	231,579		879,554		175,936		658,595
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)