| Earnings (Loss) Per Share |
10.Earnings (Loss) Per Share
Basic earnings (loss) per share is computed by dividing net income (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 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 (loss) per share of Class A common stock is as follows:
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Three Months Ended September 30, |
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Nine Months Ended September 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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$ |
15,703 |
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$ |
29,279 |
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$ |
135,977 |
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$ |
117,475 |
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Less: Net income attributable to non-controlling interests |
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20,750 |
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17,534 |
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97,786 |
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|
74,318 |
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Net income (loss) attributable to Ryan Specialty Holdings, Inc. |
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$ |
(5,047 |
) |
$ |
11,745 |
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$ |
38,191 |
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$ |
43,157 |
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Numerator: |
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Net income (loss) attributable to Class A common shareholders |
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$ |
(5,047 |
) |
$ |
11,745 |
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$ |
38,191 |
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$ |
43,157 |
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Add: Income (loss) attributed to substantively vested RSUs |
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(100 |
) |
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165 |
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|
687 |
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|
596 |
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Net income (loss) attributable to Class A common shareholders – basic |
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$ |
(5,147 |
) |
$ |
11,910 |
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$ |
38,878 |
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$ |
43,753 |
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Add: Income attributed to dilutive shares |
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— |
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12,914 |
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3,128 |
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54,812 |
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Net income (loss) attributable to Class A common shareholders – diluted |
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$ |
(5,147 |
) |
$ |
24,824 |
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$ |
42,006 |
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$ |
98,565 |
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Denominator: |
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Weighted-average shares of Class A common stock outstanding – basic |
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115,872,327 |
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109,428,073 |
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113,291,850 |
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108,035,360 |
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Add: Dilutive shares |
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— |
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156,924,316 |
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11,591,673 |
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157,035,379 |
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Weighted-average shares of Class A common stock outstanding – diluted |
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115,872,327 |
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266,352,389 |
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124,883,523 |
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265,070,739 |
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Earnings (loss) per Share: |
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Earnings (loss) per share of Class A common stock – basic |
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$ |
(0.04 |
) |
$ |
0.11 |
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$ |
0.34 |
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$ |
0.40 |
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Earnings (loss) per share of Class A common stock – diluted |
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$ |
(0.04 |
) |
$ |
0.09 |
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$ |
0.34 |
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$ |
0.37 |
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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:
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Three Months Ended September 30, |
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Nine Months Ended September 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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Conversion of non-controlling interest LLC Common Units1 |
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141,689,681 |
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— |
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142,974,016 |
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— |
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Conversion of vested Class C Incentive Units1 |
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98,699 |
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— |
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65,028 |
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— |
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Restricted Stock |
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1,015,761 |
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— |
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— |
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— |
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IPO RSUs |
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3,229,891 |
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— |
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— |
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— |
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Incentive RSUs |
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1,776,309 |
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— |
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— |
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— |
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Reload Options |
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4,548,194 |
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— |
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— |
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— |
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Staking Options |
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66,667 |
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— |
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— |
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— |
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Incentive Options |
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168,099 |
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170,392 |
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168,099 |
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170,392 |
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Restricted Common Units |
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1,239,232 |
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— |
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— |
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— |
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IPO RLUs |
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1,448,127 |
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— |
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— |
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— |
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Incentive RLUs |
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482,329 |
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— |
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— |
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— |
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Reload Class C Incentive Units |
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3,911,490 |
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— |
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— |
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— |
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Staking Class C Incentive Units |
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1,876,669 |
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— |
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— |
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— |
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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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1Weighted average units outstanding during the period.
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