XML 78 R22.htm IDEA: XBRL DOCUMENT v3.7.0.1
Pro Forma Net Income and Earnings per Share (Unaudited)
 3 Months Ended
Mar. 31, 2017
Earnings Per Share [Abstract]  
Pro Forma Net Income and Earnings per Share (Unaudited)
Computation of Earnings (Loss) Per Share
The following table sets forth the components used in the computation of basic and diluted earnings (loss) per share for the three months ended March 31, 2017 and 2016:
 
Three Months Ended March 31,
 
2017
 
2016
 
(Dollars in thousands, except per share amounts)
Numerator:
 
 
 
Net income (loss) attributable to The New Home Company Inc.
$
846

 
$
(814
)
 
 
 
 
Denominator:
 
 
 
Basic weighted-average shares outstanding
20,767,464

 
20,599,014

Effect of dilutive shares:
 
 
 
Stock options and unvested restricted stock units
131,799

 
—

Diluted weighted-average shares outstanding
20,899,263

 
20,599,014

 
 
 
 
Basic earnings (loss) per share attributable to The New Home Company Inc.
$
0.04

 
$
(0.04
)
Diluted earnings (loss) per share attributable to The New Home Company Inc.
$
0.04

 
$
(0.04
)
 
 
 
 
Antidilutive stock options and unvested restricted stock units not included in diluted earnings (loss) per share
846,018

 
1,214,427

Computation of Earnings Per Share
Basic and diluted earnings per share for the years ended December 31, 2016, 2015 and 2014 give effect to the conversion of the Company’s members’ equity into common stock on January 30, 2014 as though the conversion had occurred as of the beginning of the reporting period or the original date of issuance, if later. The number of shares converted was based on the actual IPO price of $11.00 per share.
The following table sets forth the components used in the computation of basic and diluted earnings per share for the years ended December 31, 2016, 2015 and 2014:
 
Year Ended December 31,
 
2016
 
2015
 
2014
 
(Dollars in thousands, except per share amounts)
Numerator:
 
 
 
 
 
Net income attributable to The New Home Company Inc.
$
21,022

 
$
21,688

 
$
4,787

 
 
 
 
 
 
Denominator:
 
 
 
 
 
Basic weighted-average shares outstanding
20,685,386

 
16,767,513

 
15,927,917

Effect of dilutive shares:
 
 
 
 
 
Stock options and unvested restricted stock units
106,059

 
173,575

 
41,282

Diluted weighted-average shares outstanding
20,791,445

 
16,941,088

 
15,969,199

 
 
 
 
 
 
Basic earnings per share attributable to The New Home Company Inc.
$
1.02

 
$
1.29

 
$
0.30

Diluted earnings per share attributable to The New Home Company Inc.
$
1.01

 
$
1.28

 
$
0.30

 
 
 
 
 
 
Antidilutive stock options and unvested restricted stock units not included in diluted earnings per share
849,977

 
7,414

 
796,864

Pro Forma Net Income and Earnings per Share (Unaudited)
The pro forma amounts reflect the income tax provision as if the Company was a taxable corporation as of the beginning of the period, and assume the Company filed a consolidated tax return for the periods presented.
For the year ended December 31, 2014, the pro forma tax provision assumes the Company's taxable income for the year would have included pretax income earned between January 1, 2014 and January 30, 2014, prior to the conversion to a taxable corporation. In addition, a net deferred income tax asset of $1.5 million was recognized as a result of the conversion to a taxable entity during the first quarter of 2014. However, the pro forma results exclude the effect of the conversion adjustment because of its nonrecurring nature.
Basic and diluted earnings per share and pro forma basic and diluted earnings per share give effect to the conversion of the Company's members' equity into common stock on January 30, 2014 as though the conversion had occurred as of the beginning of the reporting period or the original date of issuance, if later. See Note 2.
 
Year Ended December 31,
 
2014
 
 
Income before taxes
$
5,003

Pro forma income tax provision to reflect the conversion to a C Corporation
(1,648
)
Pro forma net income
3,355

Net loss attributable to noncontrolling interests
30

Pro forma net income attributable to The New Home Company Inc.
$
3,385

Pro forma basic earnings per share attributable to The New Home Company Inc.
$
0.21

Pro forma diluted earnings per share attributable to The New Home Company Inc.
$
0.21