Note 8 - Earnings Per Share

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 8 – 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 March 31
	2024		2023
Basic:
Weighted average common shares outstanding		15,350,240		15,337,423
Net income attributable to National HealthCare Corporation	$	26,213	$	11,723
Earnings per common share, basic	$	1.71	$	0.76
Diluted:
Weighted average common shares outstanding		15,350,240		15,337,423
Effects of dilutive instruments		154,856		18,912
Weighted average common shares outstanding		15,505,096		15,356,335
Net income attributable to National HealthCare Corporation	$	26,213	$	11,723
Earnings per common share, diluted	$	1.69	$	0.76

For the three months ended March 31, 2024, 245,726 stock options have been excluded from the calculation of diluted weighted average shares of common stock outstanding because the inclusion of these securities would have an anti-dilutive effect. For the three months ended March 31, 2023, 691,580 stock options have been excluded from the calculation of diluted weighted average shares of common stock outstanding because the inclusion of these securities would have an anti-dilutive effect.