Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share (???EPS???)

v3.10.0.1
Earnings Per Share (“EPS”)
9 Months Ended
Sep. 30, 2018
Earnings Per Share [Abstract]  
Earnings Per Share ("EPS")

Note 4 – 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. For periods in which we recognize losses, the calculation of diluted loss per share is the same as the calculation of basic loss per share. We excluded unvested restricted stock awards from the diluted weighted-average number of shares used in our diluted EPS calculation of 667,915 for the three months ended September 30, 2018 and 968,264 for the nine months ended September 30, 2018 because we had a net loss in the periods.

 

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 667,915 and 1,746,748 for the three months ended September 30, 2018 and 2017, and 968,264 and 1,525,502 for the nine months ended September 30, 2018 and 2017.

 

The calculations of basic and diluted EPS are as follows:

 

    Three Months Ended September 30, 2018     Three Months Ended September 30, 2017  
    Net  Loss     Weighted
Average
Shares
Outstanding
    Loss Per
Share
    Net  Income     Weighted
Average
Shares
Outstanding
    Earnings
Per Share
 
    (in thousands, except per share data)     (in thousands, except per share data)  
Basic:            
As reported   $ (1,221 )     23,005             $ 1,393       23,022          
Amounts allocated to unvested restricted shares                         (106 )     (1,747 )        
Amounts available to common stockholders   $ (1,221 )     23,005     $ (0.05 )   $ 1,287       21,275     $ 0.06  
Diluted:                                                
Amounts allocated to unvested restricted shares                         106                
Non participating share units                                   1,747          
Amounts reallocated to unvested restricted shares                         (114 )              
Amounts available to stockholders and assumed conversions   $ (1,221 )     23,005     $ (0.05 )   $ 1,279       23,022     $ 0.06  

 

    Nine Months Ended September 30, 2018     Nine Months Ended September 30, 2017  
    Net  Loss     Weighted
Average
Shares
Outstanding
    Loss Per
Share
    Net  Income     Weighted
Average
Shares
Outstanding
    Earnings
Per Share
 
    (in thousands, except per share data)     (in thousands, except per share data)  
Basic:            
As reported   $ (4,493 )     23,007             $ 3,030       22,807          
Amounts allocated to unvested restricted shares                         (203 )     (1,526 )        
Amounts available to common stockholders   $ (4,493 )     23,007     $ (0.20 )   $ 2,827       21,281     $ 0.13  
Diluted:                                                
Amounts allocated to unvested restricted shares                         203                
Non participating share units                                   1,526          
Amounts reallocated to unvested restricted shares                         (217 )              
Amounts available to stockholders and assumed conversions   $ (4,493 )     23,007     $ (0.20 )   $ 2,813       22,807     $ 0.12