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Note J - Earnings Per Share

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

Note J - Earnings Per Share

In periods in which the Company has net income, the Company is required to calculate earnings per share (“EPS”) using the two-class method. The two-class method is required because the Company’s Series A Preferred Stock is considered a participating security with objectively determinable and non-discretionary dividend participation rights. Series A Preferred stockholders have the right to participate in dividends above their five percent dividend rate should the Company declare dividends on its common stock at a dividend rate higher than the five percent (on an as-converted basis). Under the two-class method, undistributed and distributed earnings are allocated on a pro-rata basis to the common and the preferred stockholders. The weighted-average number of common and preferred stock outstanding during the period is then used to calculate EPS for each class of shares.

In periods in which the Company has a net loss, basic loss per share is calculated using the treasury stock method. The treasury stock method is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period. The two-class method is not used, because the calculation would be anti-dilutive.

Reconciliations of basic and diluted EPS were as follows:

		*Three Months Ended June 30,*
In thousands, except per share amounts		*2021*				*2020*
Numerator:
Net income (loss)		$	10,569			$	(6,235	)
Less: Preferred stock dividends			124				123
Less: Earnings attributable to participating securities			1,361				—
Numerator for basic EPS: income (loss) attributable to common stockholders			9,084			$	(6,358	)

Effect of dilutive securities:
Add back: Allocation of earnings to participating securities			1,361				—
Less: Re-allocation of earnings to participating securities considering potentially dilutive securities			(1,277	)			—
Numerator for diluted EPS			9,168				(6,358	)

Denominator:
Basic EPS denominator: weighted-average common shares outstanding			6,686				6,453
Diluted EPS denominator			7,193				6,453

Basic income (loss) per Common Share		$	1.36			$	(0.99	)
Diluted income (loss) per Common Share		$	1.27			$	(0.99	)

For the three months ended June 30, 2021 and 2020, respectively, the following shares have been excluded from the calculation of shares used in the diluted EPS calculation: 0.1 million and 0.1 million shares of anti-dilutive market price options; 4 thousand and 0.3 million of anti-dilutive unvested restricted shares; and 1.0 million and 1.0 million shares of anti-dilutive Series A Preferred Stock (as if converted).

		*Six Months Ended June 30,*
In thousands, except per share amounts		*2021*				*2020*
Numerator:
Net Income (loss)		$	8,811			$	(1,117	)
Less: Preferred stock dividend			246				247
Less: Earnings attributable to common stockholders			1,118				—
Numerator for basic EPS: income (loss) attributable to common stockholders			7,447				(1,364	)

Effect of dilutive securities:
Add back: Allocation of earnings to participating securities			1,118				—
Less: Re-allocation of earnings to participating securities considering potentially dilutive securities			(1,055	)			—
Numerator for diluted EPS		$	7,510			$	(1,364	)

Denominator:
Basic EPS denominator: weighted-average common shares outstanding			6,669				6,386
Diluted EPS denominator			7,131				6,386

Basic income (loss) per Common Share		$	1.12			$	(0.21	)
Diluted income (loss) per Common Share		$	1.05			$	(0.21	)

For the six months ended June 30, 2021 and 2020, respectively, the following shares have been excluded from the calculation of shares used in the diluted EPS calculation: 0.1 million and 0.1 million shares of anti-dilutive market price options; 2 thousand and 0.4 million of anti-dilutive unvested restricted shares; and 1.0 million and 1.0 million shares of anti-dilutive Series A Preferred Stock (as if converted).