Note M - Earnings Per Share

6 Months Ended

Dec. 30, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

M. Earnings Per Share

The Company calculates basic earnings per share based upon the weighted average number of common shares outstanding during the period, while the calculation of diluted earnings per share includes the dilutive effect of potential common shares outstanding during the period. The calculation of diluted earnings per share excludes all potential common shares if their inclusion would have an anti-dilutive effect.  Certain restricted stock award recipients have a non-forfeitable right to receive dividends declared by the Company and are therefore included in computing earnings per share pursuant to the two-class method. 

The components of basic and diluted earnings per share were as follows:

	For the Quarter Ended						For the Two Quarters Ended
	December 30, 2022			December 31, 2021			December 30, 2022			December 31, 2021
Basic:
Net income (loss)	$	1,154		$	(3,750	)	$	(777	)	$	(1,770	)
Less: Net earnings attributable to noncontrolling interest		(15	)		(86	)		(112	)		(144	)
Less: Undistributed earnings attributable to unvested shares		-			-			-			-
Net income (loss) attributable to Twin Disc		1,139			(3,836	)		(889	)		(1,914	)
Weighted average shares outstanding - basic		13,460			13,296			13,434			13,288
Basic Loss Per Share:
Net earnings (loss) per share - basic	$	0.08		$	(0.29	)	$	(0.07	)	$	(0.14	)
Diluted:
Net income (loss)	$	1,154		$	(3,750	)	$	(777	)	$	(1,770	)
Less: Net earnings attributable to noncontrolling interest		(15	)		(86	)		(112	)		(144	)
Less: Undistributed earnings attributable to unvested shares		-			-			-			-
Net income (loss) attributable to Twin Disc		1,139			(3,836	)		(889	)		(1,914	)
Weighted average shares outstanding - basic		13,460			13,296			13,434			13,288
Effect of dilutive stock awards		239			-			-			-
Weighted average shares outstanding - diluted		13,699			13,296			13,434			13,288
Diluted Income (Loss) Per Share:
Net earnings (loss) per share - diluted	$	0.08		$	(0.29	)	$	(0.07	)	$	(0.14	)

The following potential common shares were excluded from diluted EPS for the two quarters ended December 31, 2022 as the Company reported a net loss: 438.9 related to the Company’s unvested PSAs, 309.2 related to the Company’s unvested RS awards, and 130.9 related to the Company’s unvested RSUs.

The following potential common shares were excluded from diluted EPS for the quarter and two quarters ended December 31, 2021 as the Company reported a net loss: 440.9 related to the Company’s unvested PSAs, 262.7 related to the Company’s unvested RS awards, and 67.4 related to the Company’s unvested RSUs.