Annual report pursuant to Section 13 and 15(d)

Earnings (Loss) Per Share

v3.22.4
Earnings (Loss) Per Share
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share
13.
EARNINGS (Loss) Per Share

Basic earnings (loss) per share is computed by dividing net earnings (loss) attributable to Ryan Specialty Holdings, Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted earnings (loss) 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. The basic and diluted loss per share for the year ended December 31, 2021 includes only the period from July 22, 2021 to December 31, 2021, which represents the period wherein the Company had outstanding Class A common stock subsequent to the IPO.

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 (loss) per share information has not been presented for the year ended December 31, 2020.

 

A reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings (loss) per share of Class A common stock is as follows:

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

Net income

 

$

163,257

 

 

$

56,632

 

Net income attributable to the LLC before the Organizational Transactions

 

 

—

 

 

 

72,937

 

Net income (loss) attributable to non-controlling interests

 

 

102,205

 

 

 

(9,241

)

Net income (loss) attributable to Ryan Specialty Holdings, Inc.

 

$

61,052

 

 

$

(7,064

)

Numerator:

 

 

 

 

 

 

Net income (loss) attributable to Class A common shareholders

 

$

61,052

 

 

$

(7,064

)

Add: Income attributed to substantively vested RSUs

 

 

806

 

 

 

—

 

Net income (loss) attributable to Class A common shareholders- basic

 

$

61,858

 

 

$

(7,064

)

Add: Income attributed to dilutive shares

 

 

75,512

 

 

 

—

 

Net income (loss) attributable to Class A common shareholders- diluted

 

$

137,370

 

 

$

(7,064

)

Denominator:

 

 

 

 

 

 

Weighted-average shares of Class A common stock outstanding- basic

 

 

108,616,420

 

 

 

105,730,008

 

Add: Dilutive shares

 

 

157,134,024

 

 

 

—

 

Weighted-average shares of Class A common stock outstanding- diluted

 

 

265,750,444

 

 

 

105,730,008

 

Earnings (Loss) per Share:

 

 

 

 

 

 

Earnings (loss) per share of Class A common stock- basic

 

$

0.57

 

 

$

(0.07

)

Earnings (loss) per share of Class A common stock- diluted

 

$

0.52

 

 

$

(0.07

)

 

The following number of shares were excluded from the calculation of diluted earnings (loss) per share because the effect of including such potentially dilutive shares would have been antidilutive:

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

Restricted Stock

 

 

—

 

 

 

3,216,435

 

IPO RSUs

 

 

—

 

 

 

4,037,589

 

Reload Options

 

 

—

 

 

 

4,592,319

 

Staking Options

 

 

—

 

 

 

66,667

 

Restricted Common Units

 

 

—

 

 

 

5,743,520

 

IPO RLUs

 

 

—

 

 

 

1,543,277

 

Reload Class C Incentive Units

 

 

—

 

 

 

3,911,490

 

Staking Class C Incentive Units

 

 

—

 

 

 

2,116,667

 

Class C Incentive Units

 

 

300,000

 

 

 

—

 

Incentive Options

 

 

170,392

 

 

 

—

 

Conversion of non-controlling interest LLC Common Units (1)

 

 

—

 

 

 

142,967,621

 

 

(1)
Weighted average units outstanding during the period.