0001564590-21-020248.txt : 20210423 0001564590-21-020248.hdr.sgml : 20210423 20210423113205 ACCESSION NUMBER: 0001564590-21-020248 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 71 CONFORMED PERIOD OF REPORT: 20210331 FILED AS OF DATE: 20210423 DATE AS OF CHANGE: 20210423 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RLI CORP CENTRAL INDEX KEY: 0000084246 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 370889946 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-09463 FILM NUMBER: 21847765 BUSINESS ADDRESS: STREET 1: 9025 N. LINDBERGH DRIVE CITY: PEORIA STATE: IL ZIP: 61615 BUSINESS PHONE: 3096921000 MAIL ADDRESS: STREET 1: 9025 N. LINDBERGH DRIVE CITY: PEORIA STATE: IL ZIP: 61615 10-Q 1 rli-10q_20210331.htm 10-Q rli-10q_20210331.htm
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the quarterly period ended March 31, 2021

 

or

 

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the transition period from                 to                

 

Commission File Number:    001-09463

 

RLI Corp.

(Exact name of registrant as specified in its charter)

 

 

 

 

Delaware

 

37-0889946

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification Number)

 

 

 

9025 North Lindbergh Drive, PeoriaIL

 

61615

(Address of principal executive offices)

 

(Zip Code)

 

(309) 692-1000

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

 

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock $0.01 par value

RLI

New York Stock Exchange

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes     No

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes     No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

 

 

 

 

 

Large accelerated filer 

Accelerated filer 

Non-accelerated filer 

Smaller reporting company 

 

 

 

Emerging growth company 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes    No

 

APPLICABLE ONLY TO CORPORATE ISSUERS:

 

As of April 15, 2021, the number of shares outstanding of the registrant’s Common Stock was 45,203,438.

 

 

 


 

 

Table of Contents

 

 

 

 

Page

 

 

 

 

Part I - Financial Information

3

 

 

 

 

 

Item 1.

Financial Statements

3

 

 

 

 

 

 

Condensed Consolidated Statements of Earnings and Comprehensive Earnings for the Three-Month Periods Ended March 31, 2021 and 2020 (unaudited)

3

 

 

 

 

 

 

Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020 (unaudited)

4

 

 

 

 

 

 

Condensed Consolidated Statements of Shareholders’ Equity for the Three-Month Periods Ended March 31, 2021 and 2020 (unaudited)

5

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the Three-Month Periods Ended March 31, 2021 and 2020 (unaudited)

6

 

 

 

 

 

 

Notes to Unaudited Condensed Consolidated Interim Financial Statements

7

 

 

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

21

 

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

30

 

 

 

 

 

Item 4.

Controls and Procedures

30

 

 

 

 

Part II - Other Information

31

 

 

 

 

 

Item 1.

Legal Proceedings

31

 

 

 

 

 

Item 1a.

Risk Factors

31

 

 

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

31

 

 

 

 

 

Item 3.

Defaults upon Senior Securities

31

 

 

 

 

 

Item 4.

Mine Safety Disclosures

31

 

 

 

 

 

Item 5.

Other Information

31

 

 

 

 

 

Item 6.

Exhibits

31

 

 

 

 

Signatures

 

32

 


Table of Contents

 

 

PART I - FINANCIAL INFORMATION

 

Item 1.

Financial Statements

 

RLI Corp. and Subsidiaries

Condensed Consolidated Statements of Earnings and Comprehensive Earnings

(Unaudited)

 

 

 

For the Three Months

 

 

 

Ended March 31,

 

(in thousands, except per share data)

 

2021

 

 

2020

 

Net premiums earned

 

$

228,595

 

 

$

215,582

 

Net investment income

 

 

16,424

 

 

 

17,778

 

Net realized gains

 

 

14,150

 

 

 

15,152

 

Net unrealized gains (losses) on equity securities

 

 

28,162

 

 

 

(130,395

)

Consolidated revenue

 

$

287,331

 

 

$

118,117

 

Losses and settlement expenses

 

 

104,892

 

 

 

111,021

 

Policy acquisition costs

 

 

74,990

 

 

 

72,941

 

Insurance operating expenses

 

 

18,796

 

 

 

14,381

 

Interest expense on debt

 

 

1,901

 

 

 

1,897

 

General corporate expenses

 

 

3,342

 

 

 

1,755

 

Total expenses

 

$

203,921

 

 

$

201,995

 

Equity in earnings of unconsolidated investees

 

 

6,424

 

 

 

4,514

 

Earnings (loss) before income taxes

 

$

89,834

 

 

$

(79,364

)

Income tax expense (benefit)

 

 

16,822

 

 

 

(18,097

)

Net earnings (loss)

 

$

73,012

 

 

$

(61,267

)

 

 

 

 

 

 

 

 

 

Other comprehensive earnings (loss), net of tax

 

 

(44,747

)

 

 

(13,031

)

Comprehensive earnings (loss)

 

$

28,265

 

 

$

(74,298

)

 

 

 

 

 

 

 

 

 

Basic net earnings (loss) per share

 

$

1.62

 

 

$

(1.36

)

Diluted net earnings (loss) per share

 

$

1.60

 

 

$

(1.36

)

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

45,178

 

 

 

44,920

 

Diluted

 

 

45,674

 

 

 

44,920

 

 

See accompanying notes to the unaudited condensed consolidated interim financial statements.

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Table of Contents

 

RLI Corp. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

 

 

 

March 31,

 

 

December 31,

 

(in thousands, except share and per share data)

 

2021

 

 

2020

 

ASSETS

 

 

 

 

 

 

 

 

Investments and cash:

 

 

 

 

 

 

 

 

Fixed income:

 

 

 

 

 

 

 

 

Available-for-sale, at fair value

 

$

2,175,869

 

 

$

2,196,626

 

(amortized cost of $2,096,852 and allowance for credit losses of $375 at 3/31/21)

 

 

 

 

 

 

 

 

(amortized cost of $2,061,467 and allowance for credit losses of $397 at 12/31/20)

 

 

 

 

 

 

 

 

Equity securities, at fair value (cost - $298,926 at 3/31/21 and $293,190 at 12/31/20)

 

 

555,209

 

 

 

524,006

 

Other invested assets

 

 

50,413

 

 

 

54,232

 

Cash

 

 

94,935

 

 

 

62,217

 

Total investments and cash

 

$

2,876,426

 

 

$

2,837,081

 

Accrued investment income

 

 

16,109

 

 

 

16,126

 

Premiums and reinsurance balances receivable, net of allowances for uncollectible amounts of $18,172 at 3/31/21 and $17,658 at 12/31/20

 

 

149,736

 

 

 

174,628

 

Ceded unearned premium

 

 

111,071

 

 

 

113,488

 

Reinsurance balances recoverable on unpaid losses and settlement expenses, net of allowances for uncollectible amounts of $8,953 at 3/31/21 and $8,634 at 12/31/20

 

 

454,921

 

 

 

443,729

 

Deferred policy acquisition costs

 

 

92,595

 

 

 

88,425

 

Property and equipment, at cost, net of accumulated depreciation of $70,089 at 3/31/21 and $68,682 at 12/31/20

 

 

50,470

 

 

 

51,406

 

Investment in unconsolidated investees

 

 

134,314

 

 

 

128,382

 

Goodwill and intangibles

 

 

53,617

 

 

 

53,719

 

Other assets

 

 

33,181

 

 

 

31,501

 

TOTAL ASSETS

 

$

3,972,440

 

 

$

3,938,485

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Unpaid losses and settlement expenses

 

$

1,795,275

 

 

$

1,750,049

 

Unearned premiums

 

 

590,364

 

 

 

586,386

 

Reinsurance balances payable

 

 

26,560

 

 

 

42,265

 

Funds held

 

 

85,572

 

 

 

81,747

 

Income taxes-deferred

 

 

74,624

 

 

 

80,235

 

Bonds payable, long-term debt

 

 

149,536

 

 

 

149,489

 

Accrued expenses

 

 

45,784

 

 

 

75,925

 

Other liabilities

 

 

49,939

 

 

 

36,411

 

TOTAL LIABILITIES

 

$

2,817,654

 

 

$

2,802,507

 

 

 

 

 

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

 

 

 

Common stock ($0.01 par value)

 

 

 

 

 

 

 

 

(Shares authorized - 200,000,000 at 3/31/21 and 12/31/20)

 

 

 

 

 

 

 

 

(68,133,652 shares issued, 45,203,438 shares outstanding at 3/31/21)

 

 

 

 

 

 

 

 

(68,072,794 shares issued, 45,142,580 shares outstanding at 12/31/20)

 

$

681

 

 

$

681

 

Paid-in capital

 

 

336,757

 

 

 

335,365

 

Accumulated other comprehensive earnings

 

 

63,967

 

 

 

108,714

 

Retained earnings

 

 

1,146,380

 

 

 

1,084,217

 

Deferred compensation

 

 

7,926

 

 

 

8,292

 

Less: Treasury shares, at cost

 

 

 

 

 

 

 

 

(22,930,214 shares at 3/31/21 and 12/31/20)

 

 

(400,925

)

 

 

(401,291

)

TOTAL SHAREHOLDERS’ EQUITY

 

$

1,154,786

 

 

$

1,135,978

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

3,972,440

 

 

$

3,938,485

 

 

See accompanying notes to the unaudited condensed consolidated interim financial statements.

4


Table of Contents

 

RLI Corp. and Subsidiaries

Condensed Consolidated Statements of Shareholders’ Equity

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

Comprehensive

 

 

 

 

 

 

 

 

 

 

Treasury

 

 

 

Common

 

 

Shareholders’

Common

Paid-in

Earnings

 

 

Retained

Deferred

Shares

 

(in thousands, except share and per share data)

 

Shares

 

 

Equity

Stock

Capital

(Loss)

 

 

Earnings

Compensation

at Cost

 

Balance, January 1, 2020

 

 

44,869,015

 

 

$

995,388

 

 

$

678

 

 

$

321,190

 

 

$

52,473

 

 

$

1,014,046

 

 

$

7,980

 

 

$

(400,979

)

Cumulative-effect adjustment from ASU 2016-13

 

 

 

 

 

1,095

 

 

 

 

 

 

 

 

 

22

 

 

 

1,073

 

 

 

 

 

 

 

Net earnings (loss)

 

 

 

 

 

(61,267

)

 

 

 

 

 

 

 

 

 

 

 

(61,267

)

 

 

 

 

 

 

Other comprehensive earnings (loss), net of tax

 

 

 

 

 

(13,031

)

 

 

 

 

 

 

 

 

(13,031

)

 

 

 

 

 

 

 

 

 

Deferred compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,010

)

 

 

1,010

 

Share-based compensation

 

 

53,641

 

 

 

3,863

 

 

 

1

 

 

 

3,862

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and dividend equivalents ($0.23 per share)

 

 

 

 

 

(10,343

)

 

 

 

 

 

 

 

 

 

 

 

(10,343

)

 

 

 

 

 

 

Balance, March 31, 2020

 

 

44,922,656

 

 

$

915,705

 

 

$

679

 

 

$

325,052

 

 

$

39,464

 

 

$

943,509

 

 

$

6,970

 

 

$

(399,969

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

Comprehensive

 

 

 

 

 

 

 

 

 

 

Treasury

 

 

 

Common

 

 

Shareholders’

Common

Paid-in

Earnings

 

 

Retained

 

 

Deferred

 

 

Shares

 

(in thousands, except share and per share data)

 

Shares

 

 

Equity

Stock

Capital

(Loss)

 

 

Earnings

 

 

Compensation

 

 

at Cost

 

Balance, January 1, 2021

 

 

45,142,580

 

 

$

1,135,978

 

 

$

681

 

 

$

335,365

 

 

$

108,714

 

 

$

1,084,217

 

 

$

8,292

 

 

$

(401,291

)

Net earnings (loss)

 

 

 

 

 

73,012

 

 

 

 

 

 

 

 

 

 

 

 

73,012

 

 

 

 

 

 

 

Other comprehensive earnings (loss), net of tax

 

 

 

 

 

(44,747

)

 

 

 

 

 

 

 

 

(44,747

)

 

 

 

 

 

 

 

 

 

Deferred compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(366

)

 

 

366

 

Share-based compensation

 

 

60,858

 

 

 

1,392

 

 

 

 

 

 

1,392

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and dividend equivalents ($0.24 per share)

 

 

 

 

 

(10,849

)

 

 

 

 

 

 

 

 

 

 

 

(10,849

)

 

 

 

 

 

 

Balance, March 31, 2021

 

 

45,203,438

 

 

$

1,154,786

 

 

$

681

 

 

$

336,757

 

 

$

63,967

 

 

$

1,146,380

 

 

$

7,926

 

 

$

(400,925

)

 

See accompanying notes to the unaudited condensed consolidated interim financial statements.

 

 

5


Table of Contents

 

 

RLI Corp. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

For the Three Months

 

 

 

Ended March 31,

 

(in thousands)

 

2021

 

 

2020

 

Net cash provided by (used in) operating activities

 

$

60,287

 

 

$

(5,767

)

Cash Flows from Investing Activities

 

 

 

 

 

 

 

 

Purchase of:

 

 

 

 

 

 

 

 

Fixed income securities, available-for-sale

 

$

(145,121

)

 

$

(69,233

)

Equity securities

 

 

(31,957

)

 

 

(31,811

)

Property and equipment

 

 

(887

)

 

 

(1,910

)

Other

 

 

(4,323

)

 

 

(2,611

)

Proceeds from sale of:

 

 

 

 

 

 

 

 

Fixed income securities, available-for-sale

 

 

21,300

 

 

 

20,414

 

Equity securities

 

 

47,638

 

 

 

38,042

 

Other

 

 

521

 

 

 

2,267

 

Proceeds from call or maturity of:

 

 

 

 

 

 

 

 

Fixed income securities, available-for-sale

 

 

96,285

 

 

 

54,890

 

Net cash provided by (used in) investing activities

 

$

(16,544

)

 

$

10,048

 

Cash Flows from Financing Activities

 

 

 

 

 

 

 

 

Cash dividends paid

 

$

(10,838

)

 

$

(10,332

)

Proceeds from (payments related to) stock option exercises

 

 

(187

)

 

 

2,549

 

Net cash used in financing activities

 

$

(11,025

)

 

$

(7,783

)

Net increase (decrease) in cash

 

$

32,718

 

 

$

(3,502

)

Cash at the beginning of the period

 

 

62,217

 

 

 

46,203

 

Cash at March 31

 

$

94,935

 

 

$

42,701

 

 

See accompanying notes to the unaudited condensed consolidated interim financial statements.

 

6


Table of Contents

 

 

NOTES TO UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

 

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

A. BASIS OF PRESENTATION

 

The unaudited condensed consolidated interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) for interim financial reporting and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all the disclosures required by GAAP for complete financial statements. As such, these unaudited condensed consolidated interim financial statements should be read in conjunction with our 2020 Annual Report on Form 10-K. Management believes that the disclosures are adequate to make the information presented not misleading, and all normal and recurring adjustments necessary to present fairly the financial position at March 31, 2021 and the results of operations of RLI Corp. (the Company) and subsidiaries for all periods presented have been made. The results of operations for any interim period are not necessarily indicative of the operating results for a full year. Certain reclassifications were made to 2020 to conform to the classifications used in the current year.

 

The preparation of the unaudited condensed consolidated interim financial statements requires management to make estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated interim financial statements and the reported amounts of revenue and expenses during the period. These estimates are inherently subject to change and actual results could differ significantly from these estimates.

 

B. ADOPTED ACCOUNTING STANDARDS

 

No new accounting standards applicable in 2021 impact our financial statements.

 

C. PROSPECTIVE ACCOUNTING STANDARDS

 

There are no prospective accounting standards which would have a material impact on our financial statements as of March 31, 2021.

 

D. REINSURANCE

 

Ceded unearned premiums and reinsurance balances recoverable on unpaid losses and settlement expenses are reported separately as an asset, rather than being netted with the related liability, since reinsurance does not relieve the Company of our liability to policyholders. Such balances are subject to the credit risk associated with the individual reinsurer. We continually monitor the financial condition of our reinsurers and actively follow up on any past due or disputed amounts. As part of our monitoring efforts, we review their annual financial statements and Securities and Exchange Commission (SEC) filings for those reinsurers that are publicly traded. We also review insurance industry developments that may impact the financial condition of our reinsurers. We analyze the credit risk associated with our reinsurance balances recoverable by monitoring the AM Best and Standard & Poor’s (S&P) ratings of our reinsurers. In addition, we subject our reinsurance recoverables to detailed recoverability tests, including a segment-based analysis using the average default rating percentage by S&P rating, which assists the Company in assessing the sufficiency of the existing allowance. Additionally, we perform an in-depth reinsurer financial condition analysis prior to the renewal of our reinsurance placements.

 

Our policy is to charge to earnings, in the form of an allowance, an estimate of unrecoverable amounts from reinsurers. This allowance is reviewed on an ongoing basis to ensure that the amount makes a reasonable provision for reinsurance balances that we may be unable to recover. Once regulatory action (such as receivership, finding of insolvency, order of conservation or order of liquidation) is taken against a reinsurer, all paid and unpaid balances recoverable for the reinsurer are specifically identified and expensed into our allowance for estimated unrecoverable amounts from reinsurers. We then re-evaluate the remaining allowance and determine whether the balance is sufficient as detailed above and if needed, an additional allowance is recognized and income charged.

 

The allowances for uncollectible amounts on paid and unpaid reinsurance recoverables were $15.9 million and $9.0 million, respectively, at March 31, 2021. At December 31, 2020, the amounts were $15.9 million and $8.6 million, respectively. Changes in the allowances were due to changes in the amount of reinsurance balances outstanding, the composition of reinsurers from whom the balances were recoverable and their associated S&P default ratings. No write-offs were applied to the allowances in the first three months of 2021 and less than $0.1 million was recovered. We have no receivables with a due date that extends beyond one year that are not included in our allowance for uncollectible amounts.

 

7


Table of Contents

 

 

E. INTANGIBLE ASSETS

 

The composition of goodwill and intangible assets at March 31, 2021 and December 31, 2020 is detailed in the following table:

 

 

 

March 31,

 

 

December 31,

 

(in thousands)

 

2021

 

 

2020

 

Goodwill

 

 

 

 

 

 

 

 

Surety

 

$

40,816

 

 

$

40,816

 

Casualty

 

 

5,246

 

 

 

5,246

 

Total goodwill

 

$

46,062

 

 

$

46,062

 

Intangibles

 

 

 

 

 

 

 

 

Indefinite-lived intangibles - state insurance licenses

 

 

7,500

 

 

 

7,500

 

Definite-lived intangibles, net of accumulated amortization of $3,980 at 3/31/21 and $3,878 at 12/31/20

 

 

55

 

 

 

157

 

Total intangibles

 

$

7,555

 

 

$

7,657

 

Total goodwill and intangibles

 

$

53,617

 

 

$

53,719

 

 

All definite-lived intangible assets are amortized based on their estimated useful lives. Amortization of intangible assets was $0.1 million for the first quarter of 2021 and 2020.

 

Annual impairment assessments were performed on our goodwill and state insurance license indefinite-lived intangible asset during 2020. Based upon these reviews, none of the assets were impaired. In addition, there were no triggering events as of March 31, 2021 that would suggest an updated impairment test would be needed for our goodwill and intangible assets.

 

F. EARNINGS PER SHARE

 

Basic earnings per share (EPS) is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the dilution that could occur if securities or other contracts to issue common stock or common stock equivalents were exercised or converted into common stock. When inclusion of these items increases the earnings per share or reduces the loss per share, the effect on earnings is anti-dilutive. Under these circumstances, the diluted net earnings or net loss per share is computed excluding these items. The following represents a reconciliation of the numerator and denominator of the basic and diluted EPS computations contained in the unaudited condensed consolidated interim financial statements:

 

 

 

For the Three Months

 

 

For the Three Months

 

 

 

Ended March 31, 2021

 

 

Ended March 31, 2020

 

 

 

Income

 

 

Shares

 

 

Per Share

 

 

Income

 

 

Shares

 

 

Per Share

 

(in thousands, except per share data)

 

(Numerator)

 

 

(Denominator)

 

 

Amount

 

 

(Numerator)

 

 

(Denominator)

 

 

Amount

 

Basic EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) available to common shareholders

 

$

73,012

 

 

 

45,178

 

 

$

1.62

 

 

$

(61,267

)

 

 

44,920

 

 

$

(1.36

)

Effect of Dilutive Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock options and restricted stock units

 

 

 

 

 

496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS