| Earnings (Loss) Per Share |
12.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 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. The basic and diluted loss per share for the year ended December 31, 2021 include 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. 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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Year Ended December 31, |
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2023 |
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2022 |
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2021 |
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Net income |
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$ |
194,480 |
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$ |
163,257 |
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$ |
56,632 |
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Net income attributable to the LLC before the Organizational Transactions |
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— |
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— |
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72,937 |
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Less: Net income (loss) attributable to non-controlling interests |
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133,443 |
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102,205 |
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(9,241 |
) |
Net income (loss) attributable to Ryan Specialty Holdings, Inc. |
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$ |
61,037 |
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$ |
61,052 |
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$ |
(7,064 |
) |
Numerator: |
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Net income (loss) attributable to Class A common shareholders |
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$ |
61,037 |
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$ |
61,052 |
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$ |
(7,064 |
) |
Add (less): Income attributed to substantively vested RSUs |
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(10 |
) |
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806 |
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— |
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Net income (loss) attributable to Class A common shareholders – basic |
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$ |
61,027 |
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$ |
61,858 |
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$ |
(7,064 |
) |
Add: Income attributed to dilutive shares |
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4,185 |
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75,512 |
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— |
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Net income (loss) attributable to Class A common shareholders – diluted |
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$ |
65,212 |
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$ |
137,370 |
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$ |
(7,064 |
) |
Denominator: |
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Weighted-average shares of Class A common stock outstanding – basic |
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114,359,968 |
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108,616,420 |
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105,730,008 |
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Add: Dilutive shares |
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11,385,171 |
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157,134,024 |
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— |
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Weighted-average shares of Class A common stock outstanding – diluted |
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125,745,139 |
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265,750,444 |
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105,730,008 |
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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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$ |
0.53 |
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$ |
0.57 |
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$ |
(0.07 |
) |
Earnings (loss) per share of Class A common stock – diluted |
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$ |
0.52 |
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$ |
0.52 |
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$ |
(0.07 |
) |
The following 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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Year Ended December 31, |
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2023 |
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2022 |
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2021 |
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Conversion of non-controlling interest LLC Common Units1 |
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142,383,621 |
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— |
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142,967,621 |
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Conversion of vested Class C Incentive Units1 |
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76,397 |
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— |
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— |
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Restricted Stock |
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— |
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— |
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3,216,435 |
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IPO RSUs |
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— |
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— |
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4,037,589 |
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Reload Options |
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— |
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— |
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4,592,319 |
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Staking Options |
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— |
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— |
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66,667 |
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Incentive Options |
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— |
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170,392 |
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— |
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Restricted Common Units |
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— |
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— |
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5,743,520 |
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IPO RLUs |
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— |
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— |
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1,543,277 |
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Reload Class C Incentive Units |
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— |
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— |
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3,911,490 |
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Staking Class C Incentive Units |
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— |
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— |
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2,116,667 |
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Class C Incentive Units |
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495,822 |
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300,000 |
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— |
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1 Weighted average units outstanding during the period.
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