Quarterly report pursuant to Section 13 or 15(d)

STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE

v3.22.2.2
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE
 9 Months Ended
Sep. 30, 2022
Stockholders' Equity and Earnings Per Share [Abstract]  
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE
Basic earnings per share is computed based on the weighted average number of shares of Class A and Class B common stock outstanding during the period using the two-class method. Diluted earnings per share is computed based on the weighted average number of shares plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include restricted stock units ("RSUs") for Class A common stock.
The following table sets forth the components of basic and diluted earnings per share:
Three Months Ended September 30, Nine Months Ended
September 30,
2022 2021 2022 2021
Net income attributable to Guild $ 77,374  $ 72,096  $ 343,604  $ 241,638 
Weighted-average shares outstanding, Class A Common Stock 20,560  20,653  20,671  19,999 
Weighted-average shares outstanding, Class B Common Stock 40,333  40,333  40,333  40,333 
Weighted-average shares outstanding - basic 60,893  60,986  61,004  60,332 
Add dilutive effects of non-vested shares of restricted stock - Class A 670  414  802  286 
Weighted-average shares outstanding - diluted 61,563  61,400  61,806  60,618 
Basic earnings per share:
Class A and Class B Common Stock $ 1.27  $ 1.18  $ 5.63  $ 4.01 
Diluted earnings per share:
Class A and Class B Common Stock $ 1.26  $ 1.17  $ 5.56  $ 3.99 
No shares were excluded from the calculation of earnings per share as a result of being anti-dilutive.
Capital Stock
The Company has two classes of common stock: Class A and Class B. The Company's Class A common stock is traded on the New York Stock Exchange under the symbol “GHLD.” There is no public market for the Company’s Class B common stock. However, under the terms of the Company’s Certificate of Incorporation, the holder of Class B common stock may convert any portion or all of the holder’s shares of Class B common stock into an equal number of shares of Class A common stock at any time.
The holders of shares of Class A common stock and Class B common stock are entitled to dividends when and if declared by the Company’s Board of Directors out of legally available funds.
Any stock dividend must be paid in shares of Class A common stock with respect to Class A common stock and in shares of Class B common stock with respect to Class B common stock.
The voting powers, preferences and relative rights of Class A common stock and Class B common stock are identical in all respects, except that the holders of shares of Class A common stock have one vote per share and the holders of shares of Class B common stock have ten votes per share.
Restricted Stock Units
The Company issues RSUs, which represent the right to receive, upon vesting, one share of the Company’s common stock. The number of potentially dilutive shares related to RSUs is based on the number of shares, if any, that would be issuable at the end of the respective reporting period, assuming that date was the end of the vesting period.
Share Repurchase Program
On May 5, 2022, the Company’s Board of Directors authorized the Company to repurchase up to $20.0 million of the Company’s outstanding Class A common stock over the next 24 months from such date. The share repurchase program allows the Company to repurchase shares of its Class A common stock from time to time on the open market or in privately negotiated transactions. The Company is not obligated to purchase any shares under the share repurchase program and the timing of any repurchases will depend on a number of factors, including, but not limited to, stock price, trading volume, market conditions, and other general business considerations. The share repurchase program may be modified, suspended or terminated by the Company’s Board of Directors at any time. The Company intends to fund any repurchases under the share repurchase program with cash on hand. During the three and nine months ended September 30, 2022, the Company repurchased and subsequently retired 138,962 shares and 280,914 shares of the Company’s Class A common stock at an average purchase price of $11.13 per share and $10.84 per share, respectively. As of September 30, 2022, $17.0 million remains available for repurchase.