Note M - Earnings Per Share

6 Months Ended

Dec. 29, 2023

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. 

As discussed in Note A, during the fourth quarter of 2023, the Company changed its accounting method related to the recognition of actuarial gains and losses for its pension plans. Under the new method, actuarial gains and losses are recognized in net periodic benefit costs upon annual remeasurement in the fourth quarter, or on an interim basis as triggering events warrant remeasurement. These changes have been applied retrospectively to prior years. See Notes A, G, K, and P for further information regarding the impact of the change in accounting principle on the Company’s consolidated financial statements.

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

	For the Quarter Ended						For the Two Quarters Ended
				As Adjusted						As Adjusted
	December 29, 2023			December 30, 2022			December 29, 2023			December 30, 2022
Basic:
Net income (loss)	$	935		$	1,761		$	(148	)	$	436
Less: Net earnings attributable to noncontrolling interest		(5	)		(15	)		(95	)		(112	)
Less: Undistributed earnings attributable to unvested shares		-			-			-			-
Net income (loss) attributable to Twin Disc		930			1,746			(243	)		324
Weighted average shares outstanding - basic		13,718			13,460			13,629			13,434
Basic Loss Per Share:
Net earnings (loss) per share - basic	$	0.07		$	0.13		$	(0.02	)	$	0.02
Diluted:
Net income (loss)	$	935		$	1,761		$	(148	)	$	436
Less: Net earnings attributable to noncontrolling interest		(5	)		(15	)		(95	)		(112	)
Less: Undistributed earnings attributable to unvested shares		-			-			-			-
Net income (loss) attributable to Twin Disc		930			1,746			(243	)		324
Weighted average shares outstanding - basic		13,718			13,460			13,629			13,434
Effect of dilutive stock awards		205			239			-			215
Weighted average shares outstanding - diluted		13,923			13,699			13,629			13,649
Diluted Income (Loss) Per Share:
Net earnings (loss) per share - diluted	$	0.07		$	0.13		$	(0.02	)	$	0.02

The following potential common shares were excluded from diluted EPS for the two quarters ended December 29, 2023 because they were anti-dilutive: 135.1 related to the Company’s unvested PSAs, 2.6 related to the Company’s unvested PSAUs, 80.2 related to the Company’s unvested RS awards, and 87.4 related to the Company’s unvested RSUs.