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SEC Filings

10-Q
GREENSKY, INC. filed this Form 10-Q on 11/09/2018
Entire Document
 
GreenSky, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)—(Continued)
Information as of September 30, 2018 and for the three and nine months ended September 30, 2018 and 2017 is unaudited
(Dollars in thousands, except per share data, unless otherwise stated)


The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock for the three and nine months ended September 30, 2018. The basic and diluted earnings per share for the nine months ended September 30, 2018 represents only the period from May 24, 2018 to September 30, 2018, the period wherein we had outstanding Class A common stock.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
2018
 
2018
Numerator:
 
 
 
Income before income tax expense
$
49,087

 
$
110,101

Less: Net income attributable to GS Holdings prior to the Reorganization Transactions

 
38,213

Less: Net income attributable to noncontrolling interests subsequent to the Reorganization Transactions
33,711

 
49,368

Less: Income tax expense
3,375

 
4,969

Net income attributable to GreenSky, Inc. - basic
$
12,001

 
$
17,551

Add: Reallocation of net income attributable to noncontrolling interests after the Reorganization Transactions from the assumed exchange of common units of GS Holdings for Class A common stock
33,711

 
49,368

Less: Income tax expense on reallocation of net income attributable to noncontrolling interests(1)
7,400

 
10,893

Net income attributable to GreenSky, Inc. - diluted
$
38,312

 
$
56,026

Denominator:
 
 
 
Weighted average shares of Class A common stock outstanding - basic
57,412,673

 
57,408,861

Add: Dilutive effects as shown separately below
 
 
 
Holdco Units exchangeable for Class A common stock
128,052,758

 
128,155,169

Class A common stock options
2,813,764

 
2,646,827

Holdco warrants exchangeable for Class A common stock
707,414

 
635,436

Unvested Class A common stock(2)
169,315

 
179,339

Weighted average shares of Class A common stock outstanding - diluted
189,155,924

 
189,025,632

 
 
 
 
Earnings per share of Class A common stock outstanding - basic
$
0.21

 
$
0.31

Earnings per share of Class A common stock outstanding - diluted(3)(4)
$
0.20

 
$
0.30

(1)
For the three and nine months ended September 30, 2018 periods, we assumed effective tax rates of 22.0% and 22.1%, respectively.
(2)
Includes both Class A common stock issued as part of the Reorganization Transactions and unvested Class A common stock awards issued subsequent to the Reorganization Transactions.
(3) 
Year-to-date results do not agree to the sum of individual quarter-to-date results due to rounding.
(4)
Our calculation of diluted earnings per share excludes 1,184,029 Class A common stock options and 134,170 unvested Class A common stock awards for the three and nine months ended September 30, 2018, as their inclusion would have been anti-dilutive. These amounts represent the number of instruments outstanding at the end of the period. Application of the treasury stock method would reduce these amounts if they had a dilutive effect and were included in the computation of diluted earnings per share.
Shares of the Company’s Class B common stock do not participate in the earnings or losses of the Company and, therefore, are not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been presented.


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