Note 13 - Earnings Per Share

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

13. Earnings Per Share

Basic earnings per share is calculated by dividing net income attributable to the common shareholders 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 to the condensed consolidated financial statements, “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 September 30,					Nine Months Ended September 30,
	2021			2020		2021			2020
Numerator
Net income attributable to Generac Holdings Inc.	$	131,570		$	114,970	$	407,599		$	225,575
Redeemable noncontrolling interest redemption value adjustment		(7,557	)		811		(5,687	)		(2,281	)
Net income attributable to common shareholders	$	124,013		$	115,781	$	401,912		$	223,294
Denominator
Weighted average shares, basic		62,690,437			62,353,473		62,583,957			62,244,872
Dilutive effect of stock compensation awards (1)		1,517,680			1,407,907		1,562,325			1,301,260
Diluted shares		64,208,116			63,761,380		64,146,281			63,546,132
Net income attributable to common shareholders per share
Basic	$	1.98		$	1.86	$	6.42		$	3.59
Diluted	$	1.93		$	1.82	$	6.27		$	3.51

(1) There were no awards with an anti-dilutive impact for the three and nine months ended September 30, 2021 and 2020.