Earnings Per Share

3 Months Ended

Mar. 31, 2022

5. Earnings Per Share

The following table sets forth the computations of basic and diluted income per common share:


	Three Months Ended March 31, 2022


Earnings Per Share - Basic
Numerator:
Net income	$	33,622
Net income attributable to Class C shareholders	(17,721)
Net income attributable to other equity interest holders	(3,226)
Net income attributable to noncontrolling interests	(20,947)
Net income attributable to Stagwell Inc. common shareholders	$	12,675

Denominator:
Basic - Weighted Average number of common shares outstanding	122,285

Earnings Per Share - Basic	$	0.10

Earnings Per Share - Diluted
Numerator:
Net income attributable to Stagwell Inc. common shareholders	$	12,675
Net income attributable to Class C shareholders	17,721
	$	30,396

Denominator:
Basic - Weighted Average number of common shares outstanding	122,285
Dilutive shares:

Stock appreciation rights	2,041
Restricted share and restricted unit awards	2,786
Class C shares	170,372
Diluted - Weighted average number of common shares outstanding	297,484


Earnings Per Share - Diluted	$	0.10

The combination of MDC and SMG was completed on August 2, 2021, which was treated as a reverse acquisition for financial reporting purposes. SMG was treated as the accounting acquirer and MDC was the accounting acquiree. Therefore, under applicable accounting principles, the historical financial results of SMG prior to August 2, 2021 are considered our historical financial results. Accordingly, historical information presented in this Form 10-Q for events occurring or periods ending before August 2, 2021 does not reflect the impact of the Transactions or the financial results of MDC and may not be comparable with historical information for events occurring or periods ending on or after August 2, 2021.

SMG’s equity structure, prior to the combination with MDC, was a non-unitized single member limited liability company, resulting in all components of equity attributable to the member being reported within Members' Capital. Given that SMG was a non-unitized single member limited liability company, net income (loss) prior to the combination is not applicable for purposes of calculating earnings per share. Therefore, the earnings per share calculation in the table above includes only the three months ended March 31, 2022 and does not include the corresponding prior year period.

Restricted stock awards of 1,005 as of March 31, 2022 are excluded from the computation of diluted income (loss) per common share because the performance contingency necessary for vesting had not been met as of the reporting date.