Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v3.23.1
Earnings Per Share
 3 Months Ended
Mar. 31, 2023
Earnings Per Share [Abstract]  
Earnings Per Share
10.
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 all 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:

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Net income

 

$

36,457

 

 

$

18,076

 

Less: Net income attributable to non-controlling interests

 

 

23,297

 

 

 

11,165

 

Net income attributable to Ryan Specialty Holdings, Inc.

 

$

13,160

 

 

$

6,911

 

Numerator:

 

 

 

 

 

 

Net income attributable to Class A common shareholders

 

$

13,160

 

 

$

6,911

 

Add: Income attributed to substantively vested RSUs

 

 

225

 

 

 

29

 

Net income attributable to Class A common shareholders – basic

 

$

13,385

 

 

$

6,940

 

Add: Income attributed to dilutive shares

 

 

17,180

 

 

 

8,275

 

Net income attributable to Class A common shareholders – diluted

 

$

30,565

 

 

$

15,215

 

Denominator:

 

 

 

 

 

 

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

 

 

111,034,503

 

 

 

106,592,836

 

Add: Dilutive shares

 

 

155,943,721

 

 

 

157,528,230

 

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

 

 

266,978,224

 

 

 

264,121,066

 

Earnings per Share:

 

 

 

 

 

 

Earnings per share of Class A common stock – basic

 

$

0.12

 

 

$

0.07

 

Earnings per share of Class A common stock – diluted

 

$

0.11

 

 

$

0.06

 

 

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 March 31,

 

 

 

2023

 

 

2022

 

Incentive RSUs

 

 

5,405

 

 

 

—

 

Class C Incentive Units

 

 

495,822

 

 

 

300,000

 

Incentive Options

 

 

168,282

 

 

 

175,222