| Earnings Per Share |
Basic earnings per share is computed by dividing net income attributable to Ryan Specialty Holdings, Inc., by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted earnings per share is computed giving effect to potentially dilutive shares, including LLC equity awards and the non-controlling interests’ LLC Common Units that are exchangeable into Class A common stock. As shares of Class B common stock do not share in earnings and are not participating securities, they are not included in the Company’s calculation. A reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per share of Class A common stock is as follows:
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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Net income |
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$ |
118,038 |
|
$ |
83,817 |
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|
$ |
158,715 |
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$ |
120,274 |
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Less: Net income attributable to non-controlling interests |
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|
71,251 |
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|
53,739 |
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|
95,393 |
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|
77,036 |
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Net income attributable to Ryan Specialty Holdings, Inc. |
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$ |
46,787 |
|
$ |
30,078 |
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$ |
63,322 |
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$ |
43,238 |
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Numerator: |
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Net income attributable to Class A common shareholders |
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$ |
46,787 |
|
$ |
30,078 |
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$ |
63,322 |
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$ |
43,238 |
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Add (less): Income attributed to substantively vested RSUs |
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(1,556 |
) |
|
406 |
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(2,138 |
) |
|
541 |
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Net income attributable to Class A common shareholders – basic |
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$ |
45,231 |
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$ |
30,484 |
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$ |
61,184 |
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$ |
43,779 |
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Add: Income attributed to dilutive shares |
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|
53,791 |
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|
1,621 |
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|
72,056 |
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|
2,494 |
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Net income attributable to Class A common shareholders – diluted |
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$ |
99,022 |
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$ |
32,105 |
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$ |
133,240 |
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$ |
46,273 |
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Denominator: |
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Weighted-average shares of Class A common stock outstanding – basic |
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118,394,113 |
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|
112,915,557 |
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|
|
118,102,959 |
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|
111,980,226 |
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Add: Dilutive shares |
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152,824,436 |
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|
10,930,098 |
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152,467,499 |
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11,704,872 |
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Weighted-average shares of Class A common stock outstanding – diluted |
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271,218,549 |
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123,845,655 |
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270,570,458 |
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123,685,098 |
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Earnings per share |
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Earnings per share of Class A common stock – basic |
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$ |
0.38 |
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$ |
0.27 |
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$ |
0.52 |
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$ |
0.39 |
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Earnings per share of Class A common stock – diluted |
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$ |
0.37 |
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$ |
0.26 |
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$ |
0.49 |
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$ |
0.37 |
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The following number of shares were excluded from the calculation of diluted earnings per share because the effect of including such potentially dilutive shares would have been antidilutive:
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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Unvested Class C Incentive Units |
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195,822 |
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|
495,822 |
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195,822 |
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|
495,822 |
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Incentive Options |
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150,000 |
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|
168,282 |
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150,000 |
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|
168,282 |
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Conversion of vested Class C Incentive Units1 |
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— |
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|
47,620 |
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— |
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|
47,914 |
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Conversion of non-controlling interest LLC Common Units1 |
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— |
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|
143,835,472 |
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— |
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|
143,626,828 |
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1 Weighted average units outstanding during the period.
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