Note 13 - Earnings Per Share

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Earnings Per Share [Text Block]

1

3

.

EARNINGS PER SHARE

Earnings per share are based on the weighted average number of shares of common stock and dilutive potential common share equivalents outstanding. Basic earnings per share assumes

no

dilution and is computed by dividing net income attributable to Alaska Communications by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company. Potential common share equivalents include restricted stock granted to employees and deferred shares granted to directors.

Effective in

2015,

the Company discontinued use of the “if converted” method in calculating diluted earnings per share in connection with its contingently convertible debt. Accordingly,

977

shares related to the

6.25%

Notes were excluded from the calculation of diluted earnings per share for the

three

-month period ended

March 31, 2018.

On

May 1, 2018,

the Company repurchased the outstanding balance of the

6.25%

Notes. See Note

8

“

Long-Term Obligations

.”

The calculation of basic and diluted earnings per share for the

three

-month periods ended

March 31, 2019

and

2018

are as follows:

	Three Months Ended
	March 31,
	2019		2018
Net income attributable to Alaska Communications	$	227	$	2,101
Weighted average common shares outstanding:
Basic shares		53,382		52,681
Effect of stock-based compensation		1,223		1,176
Diluted shares		54,605		53,857
Net income per share attributable to Alaska Communications:
Basic	$	0.00	$	0.04
Diluted	$	0.00	$	0.04