Note 2 - Earnings Per Share

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 2 – EARNINGS PER SHARE

Earnings per Common Share

Earnings per common share is computed using the two-class method related to its Preferred Stock. Under the two-class method, undistributed earnings available to stockholders for the period are allocated on a pro rata basis to the common stockholders and to the holders of convertible preferred shares based on the weighted average number of common shares outstanding and number of shares that could be issued upon conversion of the Preferred Stock. Diluted earnings per share is computed using the weighted average number of common shares outstanding and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the dilutive incremental common shares associated with restricted stock awards, shares issuable upon the exercise of stock options and previously outstanding warrants, using the treasury stock method, and the potential common shares that could be issued from conversion of the Preferred Stock, using the if-converted method. When a net loss occurs, potential common shares have an anti-dilutive effect on earnings per share and such shares are excluded from the diluted EPS calculation.

For the three and nine months ended September 30, 2020 and 2019, the Company calculated earnings (loss) per share as follows:

	For the three months ended September 30,						For the nine months ended September 30,
	2020			2019			2020			2019
(In thousands, except share and per share data)	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Net (loss) income attributable to Lindblad Expeditions Holdings, Inc.	$	(27,379	)	$	2,161		$	(68,973	)	$	17,822
Series A redeemable convertible preferred stock dividend		425			-			425			-
Non-cash deemed dividend to warrant holders		-			2,654			-			2,654
Undistributed (loss) earnings available to stockholders	$	(27,804	)	$	(493	)	$	(69,398	)	$	15,168
Weighted average shares outstanding:
Total weighted average shares outstanding, basic		49,779,525			48,863,506			49,715,663			46,704,634
Dilutive potential common shares		-			-			-			252,279
Dilutive potential options		-			-			-			66,105
Dilutive potential redeemable convertible preferred shares		-			-			-			-
Dilutive potential warrants		-			-			-			2,068,352
Total weighted average shares outstanding, diluted		49,779,525			48,863,506			49,715,663			49,091,370
Undistributed (loss) earnings per share available to stockholders
Basic	$	(0.56	)	$	(0.01	)	$	(1.40	)	$	0.32
Diluted	$	(0.56	)	$	(0.01	)	$	(1.40	)	$	0.31

For the three and nine months ended September 30, 2020, the Company incurred a net loss from operations, therefore 0.3 million restricted shares, 0.2 million options and 8.9 million common shares issuable upon the conversion of the Preferred Stock as of September 30, 2020, were excluded from dilutive potential common shares for the periods as they are anti-dilutive, and basic and diluted net loss per share are the same for the periods. For the three months ended September 30, 2019, the Company incurred a net loss available to common stockholders, therefore 0.6 million restricted shares and 0.2 million options were excluded from dilutive potential common shares for the period as they are anti-dilutive, and basic and diluted net loss per share are the same for the period. For the nine months ended September 30, 2019, 0.1 million restricted shares were excluded from dilutive potential common shares as performance conditions have not been met.