Earnings Per Share

6 Months Ended

Jun. 30, 2022

5. Earnings Per Share

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


	Three Months Ended June 30, 2022		Six Months Ended June 30, 2022
Earnings Per Share - Basic
Numerator:
Net income	$	24,519	$	58,141
Net income attributable to Class C shareholders	(14,020)		(31,741)
Net loss attributable to other equity interest holders	(36)		(3,262)
Net income attributable to noncontrolling and redeemable noncontrolling interests	(14,056)		(35,003)
Net income attributable to Stagwell Inc. common shareholders	$	10,463	$	23,138

Denominator:
Basic - Weighted Average number of common shares outstanding	126,425		124,367

Earnings Per Share - Basic	$	0.08	$	0.19

Earnings Per Share - Diluted
Numerator:
Net income attributable to Stagwell Inc. common shareholders	$	10,463	$	23,138
Net income attributable to Class C shareholders	14,020		31,741
	$	24,483	$	54,879

Denominator:
Basic - Weighted Average number of common shares outstanding	126,425		124,367
Dilutive shares:
Stock appreciation rights	1,966		1,941
Restricted share and restricted unit awards	3,212		4,959
Class C shares	164,811		167,576
Diluted - Weighted average number of common shares outstanding	296,414		298,843
Earnings Per Share - Diluted	$	0.08	$	0.18

The combination of MDC and SMG, completed on August 2, 2021, was treated as a reverse acquisition for financial reporting purposes. SMG was treated as the accounting acquirer and MDC as 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 and six months ended June 30, 2022 and does not include the corresponding prior year period.

Restricted stock awards of 1,005 as of June 30, 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.