Note 11 - Earnings Per Share (“EPS”)

 

Basic EPS is computed by dividing net income by the basic weighted-average number of shares outstanding during the period.

 

Diluted EPS is computed by dividing net income by the diluted weighted-average number of shares outstanding during the period and, accordingly, reflects the potential dilution that could occur if securities or other agreements to issue common stock, such as stock options, were exercised, settled or converted into common stock and were dilutive. The diluted weighted-average number of shares used in our diluted EPS calculation is determined using the treasury stock method.

 

Unvested awards of share-based payments with rights to receive dividends or dividend equivalents, such as our restricted stock awards, are considered to be participating securities, and therefore, the two-class method is used for purposes of calculating EPS. Under the two-class method, a portion of net income is allocated to these participating securities and is excluded from the calculation of EPS allocated to common stock. Our restricted stock awards are subject to forfeiture and restrictions on transfer until vested and have identical voting, income and distribution rights to the unrestricted common shares outstanding. Our weighted average unvested restricted stock awards outstanding were 1,129,478 and 854,167 for the years ended December 31, 2015 and 2014, respectively.

 

The calculations of basic and diluted EPS are as follows:

 

			Year ended December 31, 2015
			Net Loss				Weighted Average Shares Outstanding				Loss Per Share
			(in thousands, except per share data)
	Basic:
	As reported		$	(2,726	)			21,846
	Amounts allocated to unvested restricted shares			—				—
	Amounts available to common stockholders		$	(2,726	)			21,846			$	(0.12	)
	Diluted:
	Amounts allocated to unvested restricted shares			—				—
	Non participating share units							—
	Stock options added under the treasury stock method							—
	Amounts reallocated to unvested restricted shares			—				—
	Amounts available to stockholders and assumed conversions		$	(2,726	)			21,846			$	(0.12	)

 

			Year ended December 31, 2014
			Net Income				Weighted Average Shares Outstanding				Earnings Per Share
			(in thousands, except per share data)
	Basic:
	As reported		$	7,365				16,542
	Amounts allocated to unvested restricted shares			(380	)			(854	)
	Amounts available to common stockholders		$	6,985				15,688			$	0.45
	Diluted:
	Amounts allocated to unvested restricted shares			380				—
	Non participating share units							854
	Stock options added under the treasury stock method							—
	Amounts reallocated to unvested restricted shares			(401	)			—
	Amounts available to stockholders and assumed conversions		$	6,964				16,542			$	0.42