Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share (Tables)

v3.22.2
Earnings Per Share (Tables)
 6 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
Summary of basic earnings per share
The following tables reconcile the numerators and denominators used in the computations of both basic and diluted earnings per share for the Successor periods (in thousands, except share data and per share amounts):
 
 
 
For the

three

months

ended June

30, 2022
 
 
For the six

months

ended June

30, 2022
 
 
For the

three

months

ended June

30, 2021
 
 
For the

three

months

ended

March 31,

2021
 
 
 
Successor
 
 
Predecessor
 
Basic net earnings (loss) per share:
 
 
 
 
Numerator
 
 
 
 
Net loss
  
$
(167,823
) 
  
$
(231,818
) 
   $ (14,824 )                  N/A  
Less: loss attributable to noncontrolling interest
(1)
  
 
(127,143
) 
  
 
(182,645
) 
     (17,089 )      N/A  
   
 
 
    
 
 
    
 
 
    
 
 
  
Net
income (loss)
 attributable to holders of Class A Common Stock—basic
  
$
(40,680
) 
  
$
(49,173
) 
   $ 2,265       N/A  
   
 
 
    
 
 
    
 
 
    
 
 
  
Denominator
                                
Weighted average shares of Class A Common Stock outstanding—basic
  
 
62,379,041
 
  
 
61,580,900
 
     59,881,714       N/A  
   
 
 
    
 
 
    
 
 
    
 
 
  
Basic net
earnings (loss) per share
  
$
(0.65
) 
  
$
(0.80
) 
   $ 0.04
 
  
 
 N/A
 
   
 
 
    
 
 
    
 
 
    
 
 
  
 
(1)
 
The Class A LLC Units of FoA Equity, held by the Continuing Unitholders, which comprise the noncontrolling interest in the Company, represents a participating security. Therefore, the numerator was adjusted to reduce net income by the amount of net income attributable to noncontrolling interest.
Additionally, the Class B Common Stock does not participate in earnings or losses of the Company and therefore is not a participating security. The Class B Common Stock has not been included in either the basic or diluted net income per share calculations.
Loss attributable to noncontrolling interest includes an allocation of expense related to the Amended and Restated Long-Term Incentive Plan (“A&R MLTIP”).
Summary of diluted earnings per share
 
 
  
For the

three

months

ended June 30,

2022
 
 
For the six

months

ended June 30,

2022
 
 
For the

three

months

ended June 30,

2021
 
  
For the

three

months

ended
March 31,
2021
 
 
  
Successor
 
  
Predecessor
 
Diluted net loss per share:
  
      
 
      
 
      
  
      
Numerator
  
      
 
      
 
      
  
      
Net income (loss) attributable to holders of Class A Common Stock
   
$
(40,680
) 
  
$
(49,173
) 
   $ 2,265                    N/A  
Reallocation of net income (loss) assuming exchange of Class A LLC Units
(1)
   
 
(90,293
) 
  
 
(139,756
) 
     (12,001 )       N/A  
    
 
 
    
 
 
    
 
 
     
 
 
  
Net loss attributable to holders of Class A Common Stock—diluted
   
$
(130,973
) 
  
$
(188,929
) 
   $ (9,736 )       N/A  
    
 
 
    
 
 
    
 
 
     
 
 
  
Denominator
                                  
Weighted average shares of Class A Common Stock outstanding—basic
   
 
62,379,041
 
  
 
61,580,900
 
     59,881,714        N/A  
Effect of dilutive securities:
                                  
Assumed exchange of weighted average Class A LLC Units for shares of Class A Common Stock
(2)
   
 
125,439,184
 
  
 
127,048,176
 
     131,318,286        N/A  
    
 
 
    
 
 
    
 
 
     
 
 
  
Weighted average shares of Class A Common Stock outstanding—diluted
   
 
187,818,225
 
  
 
188,629,076
 
     191,200,000        N/A  
    
 
 
    
 
 
    
 
 
     
 
 
  
Diluted net loss per share
   
$
(0.70
) 
  
$
(1.00
) 
   $ (0.05 )       N/A  
    
 
 
    
 
 
    
 
 
     
 
 
  
 
(1)
 
This adjustment assumes the after-tax elimination of noncontrolling interest due to the assumed exchange of all Class A LLC Units outstanding for shares of Class A Common Stock in FoA as of the beginning of the period following the if-converted method for calculating diluted net income (loss) per share.
Following the terms of the A&R LLC Agreement, the Class A LLC unitholders will bear approximately 85% of the cost of any vesting associated with the Replacement RSUs and Earnout Right RSUs prior to any distribution by the Company to such Class A LLC unitholders. The remaining compensation cost associated with the Replacement RSUs and Earnout Right RSUs will be born by FoA for the share attributable to Blackstone Tactical Opportunities Fund (Urban Feeder) – NQ L.P., a Delaware limited partnership (“Blocker”). As a result of the application of the if-converted method in arriving at diluted net loss per share, the entirety of the compensation cost associated with vesting of the Replacement RSUs and Earnout Right RSUs is assumed to be included in the net loss attributable to holders of the Company’s Class A Common Stock.
(2)
 
The diluted weighted average shares outstanding of Class A Common Stock includes the effects of the if-converted method to reflect the provisions of the Exchange Agreement and assumes the Class A LLC Units held by Continuing Unitholders, representing the noncontrolling interest, exchange their units on a one-for-one basis for shares of Class A Common Stock in FoA.
In addition to the Class A LLC Units, the Company also had RSUs outstanding during the Successor three and six months ended June 30, 2022. The effects of the RSUs following the treasury stock method have been excluded from the computation of diluted net loss per share given that the if-converted method was determined to be more dilutive.