Note 10 - Earnings Per Share

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 10 – Earnings per Share

Basic net income per share is computed based on the weighted average number of common shares outstanding for each period presented. Diluted net income per share reflects the potential dilution that would have occurred if securities to issue common stock were exercised, converted, or resulted in the issuance of common stock that would have then shared in our earnings.

The following table summarizes the earnings and the weighted average number of common shares used in the calculation of basic and diluted earnings per share (in thousands, except for share and per share amounts):

	Three Months Ended September 30					Nine Months Ended September 30
	2021			2020		2021		2020
Basic:
Weighted average common shares outstanding		15,364,043			15,310,754		15,347,042		15,304,235
Net income (loss) attributable to National HealthCare Corporation	$	(3,348	)	$	12,849	$	122,802	$	14,321
Earnings (loss) per common share, basic	$	(0.22	)	$	0.84	$	8.00	$	0.94
Diluted:
Weighted average common shares outstanding		15,364,043			15,310,754		15,347,042		15,304,235
Effects of dilutive instruments		-			60,557		67,641		64,540
Weighted average common shares outstanding		15,364,043			15,371,311		15,414,683		15,368,775
Net income (loss) attributable to National HealthCare Corporation	$	(3,348	)	$	12,849	$	122,802	$	14,321
Earnings (loss) per common share, diluted	$	(0.22	)	$	0.84	$	7.97	$	0.93

In the above table, options to purchase 620,076 and 698,080 shares of our common stock have been excluded for the nine months ended September 31, 2021 and 2020, respectively, due to their anti-dilutive impact.