Annual report pursuant to Section 13 and 15(d)

Earnings Per Share ("EPS")

v3.8.0.1
Earnings Per Share ("EPS")
12 Months Ended
Dec. 31, 2017
Earnings Per Share ("EPS") [Abstract]  
Earnings Per Share ("EPS")

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 1,347,229 and 1,040,784 for the years ended December 31, 2017 and 2016, respectively. Weighted average unvested restricted stock awards outstanding as of December 31, 2017 and 2016, are included in the computation of our diluted EPS for the years ended December 31, 2017 and 2016.

  

The calculations of basic and diluted EPS are as follows:

 

    Years Ended December 31, 2017     Years Ended December 31, 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   $ 4,296       22,857             $ 3,881       22,133          
Amounts allocated to unvested restricted shares     (253 )     (1,347 )             (182 )     (1,041 )        
Amounts available to common stockholders   $ 4,043       21,510     $ 0.19     $ 3,699       21,092     $ 0.18  
Diluted:                                                
Amounts allocated to unvested restricted shares     253                     182                
Non participating share units             1,347                       1,041          
Amounts reallocated to unvested restricted shares     (269 )                   (192 )              
Amounts available to stockholders and assumed conversions   $ 4,027       22,857     $ 0.18     $ 3,689       22,133     $ 0.17