Earnings Per Share

3 Months Ended

Jun. 30, 2023

Note 3. Earnings Per Share

The Company has granted stock compensation awards with nonforfeitable dividend rights which are considered participating securities. Earnings per share is calculated using the two-class method, as such awards are more dilutive under this method than the treasury stock method. Basic earnings per share is calculated by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding during the period, which excludes the participating securities. The Company's participating securities are non-vested restricted shares which are not required to share losses, and accordingly, are not allocated losses in periods of net loss. Diluted earnings per share includes the dilutive effect of additional potential common shares from stock compensation awards. For the three months ended June 30, 2023, potentially dilutive securities that were not included in the diluted per share calculation because they would be anti-dilutive comprise 10 thousand shares from options to purchase common shares. For the three months ended June 30, 2022, there were no potentially dilutive securities that were not included in the diluted per share calculation because they would be anti-dilutive. Earnings per share have been computed based on the following weighted average number of common shares outstanding:


	Three months ended June 30, (In thousands, except per share amounts)
	2023			2022
Numerator
Net income (loss) per consolidated statements of income	$	1,556		$	(1,777	)
Percentage allocated to shareholders *		99.8	%		99.9	%
Numerator for basic and diluted earnings per share	$	1,553		$	(1,775	)

Denominator
Denominator for Basic earnings per share - weighted-average shares outstanding		7,279			7,464
Dilutive effect of stock options		—			—
Denominator for diluted earnings per share		7,279			7,464

Per share income (loss) from continuing operations
Basic	$	0.21		$	(0.24	)
Diluted		0.21			(0.24	)

* Basic weighted-average shares outstanding		7,279			7,464
Basic weighted-average shares outstanding and unvested restricted stock units expected to vest		7,291			7,473
Percentage allocated to shareholders		99.8	%		99.9	%