Forward Air Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Net Income Per Share

Net Income Per Share

6 Months Ended

Jun. 30, 2023

Basic net income per common share is computed by dividing net income by the weighted-average number of common shares outstanding during each period. Restricted shares have non-forfeitable rights to dividends and as a result, are considered participating securities for purposes of computing net income per common share pursuant to the two-class method. Diluted net income per common share assumes the exercise of outstanding stock options and the vesting of performance share awards using the treasury stock method when the effects of such assumptions are dilutive.

A reconciliation of net income attributable to Forward Air and weighted-average common shares outstanding for purposes of calculating basic and diluted net income per share during the three and six months ended June 30, 2023 and 2022 is as follows:


	Three Months Ended				Six Months Ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022

Numerator:


Net income attributable to Forward Air	$	19,951	$	55,430	$	56,319	$	98,116



Income allocated to participating securities	(121)		(346)		(296)		(541)

Numerator for basic and diluted net income per share	$	19,830	$	55,084	$	56,023	$	97,575


Denominator:
Denominator for basic net income per share - weighted-average number of common shares outstanding	25,935		26,869		26,144		26,911
Dilutive stock options and performance share awards	100		120		114		136
Denominator for diluted net income per share - weighted-average number of common shares and common share equivalents outstanding	26,035		26,989		26,258		27,047

Net income per share:


Basic	$	0.76	$	2.05	$	2.14	$	3.63




Diluted	$	0.76	$	2.04	$	2.13	$	3.61

The number of shares that were not included in the calculation of net income per diluted share because to do so would have been anti-dilutive for the three and six months ended June 30, 2023 and 2022 are as follows:


	Three Months Ended		Six Months Ended
	June 30, 2023	June 30, 2022	June 30, 2023	June 30, 2022
Anti-dilutive stock options	112	57	101	57
Anti-dilutive performance shares	18	13	14	13
Anti-dilutive restricted shares and deferred stock units	73	—	58	—
Total anti-dilutive shares	203	70	173	70