Earnings per Share

12 Months Ended

Sep. 30, 2024

Note 20 - Earnings per Share

We calculate basic earnings per common share (“EPS”) pursuant to the two-class method as a result of the issuance of the Series A Preferred Stock on June 24, 2016. Our Series A Preferred Stock is considered a participating security because, in the event that we pay a dividend or make a distribution on the outstanding common stock, we shall also pay each holder of the Series A Preferred Stock a dividend on an as-converted basis. The two-class method is an earnings allocation formula that determines EPS for common stock and participating securities according to dividend and participation rights in undistributed earnings. Under this method, all earnings, distributed and undistributed, are allocated to common shares and participating securities based on their respective rights to receive dividends.

Diluted earnings per common share is calculated using the more dilutive of the two-class method or as-converted method. The two-class method uses net income available to common shareholders and assumes conversion of all potential shares other than the participating securities. The as-converted method uses net income and assumes conversion of all potential shares including the participating securities. Dilutive potential common shares include outstanding stock options, unvested restricted share units and convertible preferred stock. As noted above in Note 18, no shares of the Series A Preferred Stock remain outstanding and all rights of the holders to receive future dividends have been terminated as of the December 18, 2023 conversion date.

The following table summarizes the computation of basic and diluted earnings per common share under the two-class or as-converted method, as well as the anti-dilutive shares excluded:


	Year Ended September 30,
	2024		2023		2022
Basic earnings per common share:
Net income	$	42,001	$	12,322	$	25,848
Less: Preferred stock dividend declared	(1,097)		(5,069)		(5,159)
Income available for distribution	40,904		7,253		20,689
Income allocated to participating securities	(2,855)		(2,712)		(7,847)
Net income available to common shareholders	$	38,049	$	4,541	$	12,842

Weighted average basic shares outstanding	49,429		33,985		33,218

Basic income per common share	$	0.77	$	0.13	$	0.39

Diluted earnings per common share:
Method used:	Two-class		Two-class		Two-class
Net income available to common shareholders	$	38,049	$	4,541	$	12,842

Weighted average basic shares outstanding	49,429		33,985		33,218
Dilutive effect related to employee stock plans	1,422		494		525
Weighted average diluted shares outstanding	50,851		34,479		33,743

Diluted income per common share	$	0.75	$	0.13	$	0.38

Anti-dilutive shares excluded:
Outstanding stock-based grants	4		180		9
Convertible preferred stock	—		20,297		20,297
Total anti-dilutive shares excluded	4		20,477		20,306