Earnings Per Share

3 Months Ended

Mar. 31, 2024

Note 10 – Earnings Per Share

Earnings per share ("EPS") is calculated under the two-class method. Under the two-class method, all earnings (distributed and undistributed) are allocated to common stock and participating securities. The Company grants restricted stock awards to certain employees under its share-based compensation program, which entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested restricted stock awards meet the definition of participating securities based on their respective rights to receive nonforfeitable dividends.

Diluted EPS incorporates the potential impact of contingently issuable shares. Diluted EPS is calculated under both the two-class and treasury stock methods, and the more dilutive amount is reported. Performance stock units ("PSUs") and unvested restricted stock awards are contingently issuable common shares and are included in diluted EPS if the effect is dilutive.

The following table presents the calculation of basic and diluted EPS (in thousands, except per share amounts):


	Three Months Ended March 31,
	2024			2023
Basic earnings per share
Net income attributable to the Company	$	50		$	2,259
Less: Earnings allocable to unvested restricted stock		(259	)		(280	)
Net (loss) income attributable to common shareholders		(209	)		1,979
Weighted-average basic shares outstanding		31,546			31,304
Net (loss) income per share attributable to common shareholders	$	(0.01	)	$	0.06

Diluted earnings per share (1)
Net (loss) income attributable to common shareholders	$	(209	)	$	1,979
Weighted-average diluted shares outstanding		31,546			31,369
Net (loss) income per share attributable to common shareholders	$	(0.01	)	$	0.06

(1)

For the three months ended March 31, 2024, the computation of diluted EPS does not include contingently issuable shares due to their anti-dilutive nature. Had the contingently issuable shares been dilutive, the denominator for diluted EPS would have been 31,568,257, including 22,536 contingently issuable shares related to unvested restricted stock awards. For the three months ended March 31, 2023, the computation of diluted EPS includes contingently issuable shares related to PSUs calculated under the two-class method. Additionally, for the three months ended March 31, 2023, the computation of diluted EPS does not include contingently issuable shares related to unvested restricted stock awards due to their anti-dilutive nature. Had the contingently issuable shares been dilutive, the denominator for diluted EPS would have been 31,378,419, including 9,625 contingently issuable shares related to unvested restricted stock awards.