TWO Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

9 Months Ended

Sep. 30, 2024

The following table presents a reconciliation of the (loss) earnings and shares used in calculating basic and diluted (loss) earnings per share for the nine months ended September 30, 2024 and 2023.


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands, except share data)	2024		2023		2024		2023
Basic (Loss) Earnings Per Share:


Net (loss) income	$	(238,485)	$	306,192	$	21,439	$	326,829


Dividends on preferred stock	(11,784)		(12,115)		(35,352)		(36,595)
Gain on repurchase and retirement of preferred stock	—		—		644		2,454
Dividends and undistributed earnings allocated to participating restricted stock units	(303)		(1,895)		(940)		(1,936)
Net (loss) income attributable to common stockholders, basic	$	(250,572)	$	292,182	$	(14,209)	$	290,752
Basic weighted average common shares	103,635,455		96,176,287		103,531,431		95,059,856
Basic (loss) earnings per weighted average common share	$	(2.42)	$	3.04	$	(0.14)	$	3.06
Diluted (Loss) Earnings Per Share:
Net (loss) income attributable to common stockholders, basic	$	(250,572)	$	292,182	$	(14,209)	$	290,752
Reallocation impact of undistributed earnings to participating restricted stock units	—		117		—		5

Interest expense attributable to convertible notes	—		4,636		—		14,164
Net (loss) income attributable to common stockholders, diluted	$	(250,572)	$	296,935	$	(14,209)	$	304,921
Basic weighted average common shares	103,635,455		96,176,287		103,531,431		95,059,856
Effect of dilutive shares issued in an assumed vesting of performance share units	—		241,752		—		316,447
Effect of dilutive shares issued in an assumed conversion	—		9,210,091		—		9,472,715
Diluted weighted average common shares	103,635,455		105,628,130		103,531,431		104,849,018
Diluted (loss) earnings per weighted average common share	$	(2.42)	$	2.81	$	(0.14)	$	2.91

For the three and nine months ended September 30, 2024, excluded from the calculation of diluted earnings per share was the effect of adding undistributed earnings reallocated to 687,140 and 731,953 weighted average participating RSUs, respectively, as their inclusion would have been antidilutive For the three and nine months ended September 30, 2023, participating RSUs were included in the calculations of basic and diluted earnings per share under the two-class method, as it was more dilutive than the alternative treasury stock method.

For the three and nine months ended September 30, 2024, excluded from the calculation of diluted earnings per share was the effect of adding 424,979 and 454,588 weighted average common share equivalents, respectively, related to the assumed vesting of outstanding PSUs, as their inclusion would have been antidilutive. For the three and nine months ended September 30, 2023, the assumed vesting of outstanding PSUs was included in the calculation of diluted earnings per share under the two-class method, as it was more dilutive than the alternative treasury stock method.

For the three and nine months ended September 30, 2024, excluded from the calculation of diluted earnings per share was the effect of adding back $4.5 million and $13.7 million of interest expense and 8,871,339 and 9,108,945 weighted average common share equivalents, respectively, related to the assumed conversion of the Company’s convertible senior notes, as their inclusion would have been antidilutive. For the three and nine months ended September 30, 2023, the assumed conversion of the Company’s convertible senior notes was included in the calculation of diluted earnings per share under the if-converted method.