Ryan Specialty Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Share

12.

Earnings Per Share

Basic earnings per share is computed by dividing net earnings 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 all potentially dilutive shares. 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.

Prior to the IPO, the LLC equity structure included preferred units, Class A common units, and Class B common units. The Company considered the calculation of earnings per unit for periods prior to the IPO and determined that it would not be meaningful to the users of these consolidated financial statements. Therefore, earnings per share information has not been presented for the three and six months ended June 30, 2021.

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:


	Three Months Ended June 30, 2022		Six Months Ended June 30, 2022
Net income	$	70,120	$	88,196
Net income attributable to non-controlling interests		45,619		56,784
Net income attributable to Ryan Specialty Holdings, Inc.	$	24,501	$	31,412
Numerator:
Net income attributable to Class A common shareholders	$	24,501	$	31,412
Add: Income attributed to substantively vested RSUs		387		372
Net income attributable to Class A common shareholders- basic		24,888		31,784
Add: Income attributed to dilutive shares		1,544		41,942
Net income attributable to Class A common shareholders- diluted	$	26,432	$	73,726
Denominator:
Weighted-average shares of Class A common stock outstanding- basic		108,054,437		107,327,462
Add: Dilutive shares		12,150,465		157,090,008
Weighted-average shares of Class A common stock outstanding- diluted		120,204,902		264,417,470
Earnings per Share:
Earnings per share of Class A common stock- basic	$	0.23	$	0.30
Earnings per share of Class A common stock- diluted	$	0.22	$	0.28

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:


	Three Months Ended June 30, 2022		Six Months Ended June 30, 2022
Incentive Options		175,222		175,222
Class C Incentive Units		300,000		300,000
Conversion of non-controlling interest LLC Common Units (1)		144,495,397		—

(1)Weighted average shares outstanding for the three months ended June 30, 2022.