Earnings Per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Share

Note 10 — Earnings Per Share

We have shares of restricted stock issued and outstanding that are currently unvested. Because holders of shares of unvested restricted stock are entitled to the same liquidation and dividend rights as the holders of our unrestricted common stock, we are required to compute basic and diluted earnings per share (“EPS”) under the two-class method in periods in which we have earnings. Under the two-class method, net income or loss attributable to common shareholders for each period is allocated based on the participation rights of both common shareholders and the holders of any participating securities as if earnings for the respective periods had been distributed. For periods in which we have a net loss we do not use the two-class method as holders of our restricted shares are not obligated to share in such losses.

Basic EPS is computed by dividing net income or loss by the weighted average shares of our common stock outstanding. The calculation of diluted EPS is similar to that for basic EPS, except that the denominator includes dilutive common stock equivalents and the numerator excludes the effects of dilutive common stock equivalents, if any. The computations of the numerator (earnings or loss) and denominator (shares) to derive the basic and diluted EPS amounts presented on the face of the accompanying condensed consolidated statements of operations are as follows (in thousands):

	Three Months Ended			Three Months Ended
	June 30, 2023			June 30, 2022
	Income		Shares	Income		Shares
Basic:
Net income (loss)	$	7,100		$	(29,699)
Less: Undistributed earnings allocated to participating securities		(12)			—
Net income (loss) available to common shareholders, basic	$	7,088	150,791	$	(29,699)	151,205
Diluted:
Net income (loss) available to common shareholders, basic	$	7,088	150,791	$	(29,699)	151,205
Effect of dilutive securities:
Share-based awards other than participating securities		—	2,613		—	—
Net income (loss) available to common shareholders, diluted	$	7,088	153,404	$	(29,699)	151,205

	Six Months Ended			Six Months Ended
	June 30, 2023			June 30, 2022
	Income		Shares	Income		Shares
Basic:
Net income (loss)	$	1,935		$	(71,730)
Less: Undistributed earnings allocated to participating securities		(3)			—
Net income (loss) available to common shareholders, basic	$	1,932	151,275	$	(71,730)	151,174
Diluted:
Net income (loss) available to common shareholders, basic	$	1,932	151,275	$	(71,730)	151,174
Effect of dilutive securities:
Share-based awards other than participating securities		—	2,598		—	—
Net income (loss) available to common shareholders, diluted	$	1,932	153,873	$	(71,730)	151,174

We had net losses for the three- and six-month periods ended June 30, 2022. Accordingly, our diluted EPS calculation for these periods excluded any assumed exercise or conversion of common stock equivalents. These common stock equivalents were excluded because they were deemed to be anti-dilutive, meaning their inclusion would have reduced the reported net loss per share in the applicable periods. Shares that otherwise would have been included in the diluted per share calculations assuming we had earnings are as follows (in thousands):

	Three Months Ended	Six Months Ended
	June 30,	June 30,
	2022	2022
Diluted shares (as reported)	151,205	151,174
Share-based awards	1,250	1,119
Total	152,455	152,293

The following potentially dilutive shares related to the 2022 Notes, the 2023 Notes and the 2026 Notes were excluded from the diluted EPS calculation as they were anti-dilutive (in thousands):

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2023	2022	2023	2022
2022 Notes	—	—	—	1,211
2023 Notes	3,168	3,168	3,168	3,168
2026 Notes	28,676	28,676	28,676	28,676

We have outstanding restricted stock units (“RSUs”) (Note 11) as well as post-closing earn-out consideration related to the Alliance acquisition (Note 3) that can each be settled in either cash or shares of our common stock or a combination thereof, which are not included in the computation of diluted EPS as cash settlement is assumed.