Note 9 - Earnings Per Share

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 9 – 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
	2022			2021			2022		2021
Basic:
Weighted average common shares outstanding		15,445,569			15,364,043			15,438,375		15,347,042
Net income/(loss) attributable to National HealthCare Corporation	$	(2,429	)	$	(3,348	)	$	16,092	$	122,802
Earnings/(loss) per common share, basic	$	(0.16	)	$	(0.22	)	$	1.04	$	8.00
Diluted:
Weighted average common shares outstanding		15,445,569			15,364,043			15,438,375		15,347,042
Effects of dilutive instruments		-			-			38,728		67,641
Weighted average common shares outstanding		15,445,569			15,364,043			15,477,103		15,414,683
Net income/(loss) attributable to National HealthCare Corporation	$	(2,429	)	$	(3,348	)	$	16,092	$	122,802
Earnings/(loss) per common share, diluted	$	(0.16	)	$	(0.22	)	$	1.04	$	7.97

In the above table, options to purchase 389,781 and 620,076 shares of our common stock have been excluded for the nine months ended September 30, 2022 and 2021, respectively, due to their anti-dilutive impact.