Earnings per Share

3 Months Ended

Dec. 31, 2022

NOTE 3: EARNINGS PER SHARE

The following table reconciles the number of common shares used to compute basic and diluted earnings per share attributable to EZCORP Inc., shareholders:


	Three Months Ended December 31,
(in thousands, except per share amounts)	2022		2021

Basic earnings per common share:
Net income - basic	$	16,778	$	15,721
Weighted shares outstanding - basic	56,308		56,183
Basic earnings per common share	$	0.30	$	0.28

Diluted earnings per common share:
Net income - basic	$	16,778	$	15,721
Add: Convertible Notes interest expense, net of tax*	4,540		1,884
Net income - diluted	$	21,318	$	17,605
Weighted shares outstanding - basic	56,308		56,183
Effect of dilution from equity-based compensation awards**	1,118		541
Effect of dilution from if-converted Convertible Notes***	26,353		25,224
Weighted shares outstanding - diluted	83,779		81,948
Diluted earnings per common share	$	0.25	$	0.21

Potential common shares excluded from the calculation of diluted earnings per share above:
Restricted stock****	1,552		1,936

* Includes $3.5 million loss on extinguishment of debt recorded to "Interest expense" in the Company's condensed consolidated statement of operations.

** Includes time-based share-based awards and performance based awards for which targets for fiscal year tranches have been achieved and vesting is subject only to achievement of service conditions.

*** See Note 7: Debt for conversion price and initial conversion rate of the 2024 Convertible Notes, 2025 Convertible Notes and 2029 Convertible Notes.

**** Includes antidilutive share-based awards as well as performance-based share-based awards that are contingently issuable, but for which the condition for issuance has not been met as of the end of the reporting period.