Note 14 - Earnings Per Share

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Earnings Per Share [Text Block]

14. Earnings Per Share

Basic earnings per share is calculated by dividing net income attributable to the common stockholders of the Company by the weighted average number of common shares outstanding during the period, exclusive of restricted shares. Except where the result would be anti-dilutive, diluted earnings per share is calculated by assuming the vesting of unvested restricted stock and the exercise of stock options. Refer to Note 3, “Redeemable Noncontrolling Interest” for further information regarding the accounting for redeemable noncontrolling interests.

The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share:

	Three Months Ended March 31,
	2020			2019
Numerator
Net income attributable to Generac Holdings Inc.	$	44,460		$	44,861
Redeemable noncontrolling interest redemption value adjustment		(1,522	)		2,432
Net income attributable to common shareholders	$	42,938		$	47,293
Denominator
Weighted average shares, basic		62,126,481			61,762,260
Dilutive effect of stock compensation awards (1)		1,157,256			461,378
Diluted shares		63,283,737			62,223,638
Net income attributable to common shareholders per share
Basic	$	0.69		$	0.77
Diluted	$	0.68		$	0.76

(1) Excludes approximately 71,800 stock options for the three months ended March 31, 2019, as the impact of such awards was anti-dilutive. There were no awards with an anti-dilutive impact for the three months ended March 31, 2020.