| 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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2023 |
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2022 |
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2023 |
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2022 |
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Net income |
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$ |
83,817 |
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$ |
70,120 |
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$ |
120,274 |
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$ |
88,196 |
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Less: Net income attributable to non-controlling interests |
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53,739 |
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45,619 |
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|
77,036 |
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56,784 |
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Net income attributable to Ryan Specialty Holdings, Inc. |
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$ |
30,078 |
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$ |
24,501 |
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$ |
43,238 |
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$ |
31,412 |
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Numerator: |
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Net income attributable to Class A common shareholders |
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$ |
30,078 |
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$ |
24,501 |
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$ |
43,238 |
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$ |
31,412 |
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Add: Income attributed to substantively vested RSUs |
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|
406 |
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|
387 |
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541 |
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|
372 |
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Net income attributable to Class A common shareholders – basic |
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$ |
30,484 |
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$ |
24,888 |
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$ |
43,779 |
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$ |
31,784 |
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Add: Income attributed to dilutive shares |
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1,621 |
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1,544 |
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2,494 |
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41,942 |
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Net income attributable to Class A common shareholders – diluted |
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$ |
32,105 |
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$ |
26,432 |
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$ |
46,273 |
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$ |
73,726 |
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Denominator: |
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Weighted-average shares of Class A common stock outstanding – basic |
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112,915,557 |
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108,054,437 |
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111,980,226 |
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107,327,462 |
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Add: Dilutive shares |
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10,930,098 |
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12,150,465 |
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11,704,872 |
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157,090,008 |
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Weighted-average shares of Class A common stock outstanding – diluted |
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123,845,655 |
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120,204,902 |
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123,685,098 |
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264,417,470 |
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Earnings per Share: |
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Earnings per share of Class A common stock – basic |
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$ |
0.27 |
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$ |
0.23 |
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$ |
0.39 |
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$ |
0.30 |
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Earnings per share of Class A common stock – diluted |
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$ |
0.26 |
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$ |
0.22 |
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$ |
0.37 |
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$ |
0.28 |
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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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2023 |
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2022 |
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2023 |
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2022 |
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Unvested Class C Incentive Units |
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495,822 |
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300,000 |
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495,822 |
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300,000 |
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Incentive Options |
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168,282 |
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175,222 |
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168,282 |
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175,222 |
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Conversion of vested Class C Incentive Units1 |
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47,620 |
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— |
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47,914 |
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— |
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Conversion of non-controlling interest LLC Common Units1 |
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143,835,472 |
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144,495,397 |
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143,626,828 |
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— |
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1Weighted average units outstanding during the period.
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