Note 13 - Earnings Per Share

6 Months Ended

Jun. 30, 2022

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 as well as the satisfaction of certain contingent consideration conditions as of the end of the period. Refer to Note 3, “Redeemable Noncontrolling Interest,” to the condensed consolidated financial statements, 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 June 30,					Six Months Ended June 30,
	2022			2021		2022			2021
Numerator
Net income attributable to Generac Holdings Inc.	$	156,359		$	127,036	$	270,217		$	276,029
Redeemable noncontrolling interest redemption value adjustment		(13,645	)		1,747		(25,592	)		1,870
Net income attributable to common shareholders	$	142,714		$	128,783	$	244,625		$	277,899
Denominator
Weighted average shares, basic		63,662,510			62,605,166		63,607,711			62,533,725
Dilutive effect of stock compensation awards (1)		1,040,295			1,483,543		1,180,348			1,563,653
Dilutive effect of contingently issued shares		10,943			-		10,943			-
Diluted shares		64,713,748			64,088,709		64,799,002			64,097,378
Net income attributable to common shareholders per share
Basic	$	2.24		$	2.06	$	3.85		$	4.44
Diluted	$	2.21		$	2.01	$	3.78		$	4.34

(1) Excludes approximately 79,000 and 33,000 stock options and restricted stock awards for the three and six months ended June 30, 2022, respectively, as the impact of such awards was anti-dilutive. There were no awards with an anti-dilutive impact for the three and six months ended June 30, 2021.