Earnings (loss) per Share

9 Months Ended

Sep. 30, 2021

Basic earnings (loss) per share is computed by dividing net income by the weighted-average number of shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the sum of (1) the weighted-average number of shares of common stock outstanding during the period, and (2) the dilutive effect of assumed conversion of equity awards using the treasury stock method. With respect to the number of weighted-average shares outstanding (denominator), diluted shares reflects: (i) the exercise of options to acquire common stock to the extent that the options’ exercise prices are less than the average market price of common shares during the period and (ii) the pro forma vesting of restricted stock units.

The following table sets forth the computations of basic and diluted earnings per share:


	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020

Basic income (loss) per share
Numerator:
Net income (loss) attributable to Mistras Group, Inc.	$	3,380	$	1,523	$	3,955	$	(99,642)
Denominator:
Weighted average common shares outstanding	29,619		29,177		29,550		29,086
Basic income (loss) per share	$	0.11	$	0.05	$	0.13	$	(3.43)

Diluted income (loss) per share:
Numerator:
Net income (loss) attributable to Mistras Group, Inc.	$	3,380	$	1,523	$	3,955	$	(99,642)
Denominator:
Weighted average common shares outstanding	29,619		29,177		29,550		29,086
Dilutive effect of stock options outstanding	—		—		—		—
Dilutive effect of restricted stock units outstanding (1)	508		134		543		—
	30,127		29,311		30,093		29,086
Diluted income (loss) per share	$	0.11	$	0.05	$	0.13	$	(3.43)

_______________

(1) For the nine months ended September 30, 2020, 213,000 shares related to restricted stock were excluded from the calculation of diluted EPS due to the net loss for the period.