Note M - Earnings Per Share

9 Months Ended

Mar. 29, 2024

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 Three Quarters Ended
				As Adjusted						As Adjusted
	March 29, 2024			March 31, 2023			March 29, 2024			March 31, 2023
Basic:
Net income	$	3,900		$	3,357		$	3,752		$	3,793
Less: Net earnings attributable to noncontrolling interest		(78	)		(76	)		(173	)		(188	)
Less: Undistributed earnings attributable to unvested shares		-			-			-			-
Net income attributable to Twin Disc		3,822			3,281			3,579			3,605
Weighted average shares outstanding - basic		13,742			13,504			13,663			13,455
Basic Income Per Share:
Net earnings per share - basic	$	0.28		$	0.24		$	0.26		$	0.27
Diluted:
Net income	$	3,900		$	3,357		$	3,752		$	3,793
Less: Net earnings attributable to noncontrolling interest		(78	)		(76	)		(173	)		(188	)
Less: Undistributed earnings attributable to unvested shares		-			-			-			-
Net income attributable to Twin Disc		3,822			3,281			3,579			3,605
Weighted average shares outstanding - basic		13,742			13,504			13,663			13,455
Effect of dilutive stock awards		162			158			189			153
Weighted average shares outstanding - diluted		13,904			13,662			13,852			13,608
Diluted Income Per Share:
Net earnings per share - diluted	$	0.27		$	0.24		$	0.26		$	0.26

The following potential common shares were excluded from diluted EPS for the three quarters ended March 29, 2024 because they were anti-dilutive: 224.6 related to the Company’s unvested PSAs, 10.5 related to the Company’s unvested PSAUs, 153.9 related to the Company’s unvested RS awards, and 51.0 related to the Company’s unvested RSUs.

The following potential common shares were excluded from diluted EPS for the three quarters ended March 31, 2023 because they were anti-dilutive: 355.5 related to the Company’s unvested PSAs, 191.6 related to the Company’s unvested RS awards, and 59.5 related to the Company’s unvested RSUs.