Note 4 - Earnings Per Share (“EPS”) (Restated)

 

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 1,478,615 and 885,486 for the three months ended June 30, 2017 and 2016, and 1,413,045 and 885,486 for the six months ended June 30, 2017 and 2016.

 

The calculations of basic and diluted EPS are as follows:

 

		Three Months Ended June 30, 2017												Three Months Ended June 30, 2016
						Weighted												Weighted
						Average				Earnings								Average				Earnings
		Net				Shares				Per								Shares				Per
		Income				Outstanding				Share				Income				Outstanding				Share
		(in thousands, except per share data)												(in thousands, except per share data)
Basic:
As reported		$	1,947				22,763							$	1,025				21,846
Amounts allocated to unvested restricted shares			(127	)			(1,479	)							(42	)			(885	)
Amounts available to common stockholders		$	1,820				21,284			$	0.09			$	983				20,961			$	0.05
Diluted:
Amounts allocated to unvested restricted shares			127				—								42				—
Non participating share units							1,479												885
Amounts reallocated to unvested restricted shares			(135	)			—								(43	)			—
Amounts available to stockholders and assumed conversions		$	1,812				22,763			$	0.08			$	982				21,846			$	0.04

 

		Six Months Ended June 30, 2017												Six Months Ended June 30, 2016
						Weighted												Weighted
						Average				Earnings								Average				Earnings
		Net				Shares				Per				Net				Shares				Per
		Income				Outstanding				Share				Income				Outstanding				Share
		(in thousands, except per share data)												(in thousands, except per share data)
Basic:
As reported		$	1,637				22,697							$	1,618				21,846
Amounts allocated to unvested restricted shares			(102	)			(1,413	)							(66	)			(885	)
Amounts available to common stockholders		$	1,535				21,284			$	0.07			$	1,552				20,961			$	0.08
Diluted:
Amounts allocated to unvested restricted shares			102				—								66				—
Non participating share units							1,413												885
Amounts reallocated to unvested restricted shares			(109	)			—								(68	)			—
Amounts available to stockholders and assumed conversions		$	1,528				22,697			$	0.07			$	1,550				21,846			$	0.07