TWO Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Earnings Per Share

Earnings Per Share

3 Months Ended

Mar. 31, 2025

The following table presents a reconciliation of the (loss) earnings and shares used in calculating basic and diluted (loss) earnings per share for the three months ended March 31, 2025 and 2024:


	Three Months Ended
	March 31,
(in thousands, except share data)	2025		2024
Basic (Loss) Earnings Per Share:


Net (loss) income	$	(79,055)	$	203,588


Dividends on preferred stock	(13,186)		(11,784)
Gain on repurchase and retirement of preferred stock	—		644
Dividends and undistributed earnings allocated to participating restricted stock units	(404)		(1,441)
Net (loss) income attributable to common stockholders, basic	$	(92,645)	$	191,007
Basic weighted average common shares	103,976,437		103,401,940
Basic (loss) earnings per weighted average common share	$	(0.89)	$	1.85
Diluted (Loss) Earnings Per Share:
Net (loss) income attributable to common stockholders, basic	$	(92,645)	$	191,007
Reallocation impact of undistributed earnings to participating restricted stock units	—		61

Interest expense attributable to convertible notes	—		4,619
Net (loss) income attributable to common stockholders, diluted	$	(92,645)	$	195,687
Basic weighted average common shares	103,976,437		103,401,940
Effect of dilutive shares issued in an assumed vesting of performance share units	—		361,286
Effect of dilutive shares issued in an assumed conversion	—		9,210,091
Diluted weighted average common shares	103,976,437		112,973,317
Diluted (loss) earnings per weighted average common share	$	(0.89)	$	1.73

For the three months ended March 31, 2025, excluded from the calculation of diluted earnings per share was the effect of adding undistributed earnings reallocated to 690,043 weighted average participating RSUs as their inclusion would have been antidilutive under the two-class method. For the three months ended March 31, 2024, participating RSUs were included in the calculations of basic and diluted earnings per share under the two-class method, as it was more dilutive than the alternative treasury stock method.

For the three months ended March 31, 2025, excluded from the calculation of diluted earnings per share was the effect of adding 623,727 weighted average common share equivalents related to the assumed vesting of outstanding PSUs, as their inclusion would have been antidilutive under the two-class method. For the three months ended March 31, 2024, the assumed vesting of outstanding PSUs was included in the calculation of diluted earnings per share under the two-class method, as it was more dilutive than the alternative treasury stock method.

For the three months ended March 31, 2025, excluded from the calculation of diluted earnings per share was the effect of adding back $4.5 million of interest expense and 8,871,339 weighted average common share equivalents related to the assumed conversion of the Company’s convertible senior notes, as their inclusion would have been antidilutive under the two-class method. For the three months ended March 31, 2024, the assumed conversion of the Company’s convertible senior notes (under the if-converted method) was included in the calculation of diluted earnings per share under the two-class method.