Note 10 - Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

EARNINGS (LOSS) PER SHARE

NOTE 10—EARNINGS (LOSS) PER SHARE

The computation of basic and diluted earnings per share (“EPS”) is shown on the following page:

(In thousands, except per share amounts)	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Earnings attribution
Class A common stock		(12,804)		3,435	$	(21,046)	$	3,329
Class A restricted stock awards		1		229		102		230
Class B common stock		(1,175)		1,541		(3,134)		3,573
Class B restricted stock awards		4		71		9		143
Forfeitable dividends declared on unvested stock-based awards		—		265		638		298
Net income	$	(13,974)	$	5,541	$	(23,431)	$	7,573
	Three months ended June 30, 2025				Three months ended June 30, 2024
	Class A		Class B		Class A		Class B
Dual class EPS calculations
Numerator
Net earnings for basic earnings per common share	$	(12,804)	$	(1,175)	$	3,435	$	1,541
Add: Class B net earnings for diluted earnings per share		—		—		1,541
Net earnings for diluted earnings per share	$	(12,804)		(1,175)	$	4,976		1,541
Denominator
Weighted average shares used to compute basic earnings per share		43,850		9,710		42,603		8,530
Dilutive effect of stock option awards		—		—		517		91
Dilutive effect of restricted stock units		—		—		192		26
Dilutive effect of performance stock units		—		—		848		148
Dilutive effect of conversion of Class B common stock to Class A common stock		—		—		6,256		—
Weighted average shares used to compute diluted earnings per share		43,850		9,710		50,416		8,795
Earnings per common share
Basic	$	(0.29)	$	(0.12)	$	0.08	$	0.18
Diluted	$	(0.29)	$	(0.12)	$	0.08	$	0.18
	Six months ended June 30, 2025				Six months ended June 30, 2024
	Class A		Class B		Class A		Class B
Numerator
Net earnings for basic and diluted earnings per common share	$	(21,046)	$	(3,134)	$	3,329	$	3,573
Denominator
Weighted average shares used to compute basic earnings per share		43,878		10,030		42,549		8,519
Dilutive effect of stock option awards		—		—		542		93
Dilutive effect of restricted stock units		—		—		228		29
Dilutive effect of performance stock units		—		—		917		156
Dilutive effect of conversion of Class B common stock to Class A common stock		—		—		—		—
Weighted average shares used to compute diluted earnings per share		43,878		10,030		44,236		8,797
Earnings per common share
Basic	$	(0.48)	$	(0.31)	$	0.08	$	0.42
Diluted	$	(0.48)	$	(0.31)	$	0.08	$	0.41

Unvested restricted stock awards have the right to receive nonforfeitable dividends on the same basis as common shares; therefore, unvested restricted stock is considered a participating security to calculate EPS. Under the two-class method, the Company reports separately the net earnings allocated away from holders of Class A and Class B common stock to holders of unvested restricted stock awards.

For accounting purposes, Class B’s participation rights in net earnings are, in substance, discretionary based on the power of the Company’s Board of Directors to add or modify expense allocation policies, redefine CORE assets, and redetermine CORE’s per-ton usage fees at any time, in its sole discretion, without shareholder approval. Therefore, no amount of the Company’s net earnings shall be allocated to Class B to calculate EPS other than actual dividends declared during the period for the tracking stock. However, during the three and six months ended June 30, 2025, dividends declared by the Company were more than consolidated net income (loss) for the period, which resulted in an undistributed net loss for reporting purposes. The resulting undistributed net loss was allocated proportionately between outstanding Class A and Class B common stock based on the rights to residual net assets upon liquidation being equal between holders of Class A and Class B common stock. For the six months ended June 30, 2025, two dividends were declared for Class A common stock and one dividend was declared for Class B common stock.

Diluted EPS is calculated using the treasury stock method for stock options and restricted stock units. For performance stock units, the awards are first evaluated under the contingently issuable shares guidance, which requires a determination as to whether shares would be issuable if the end of the reporting period were the end of the contingency period. For shares determined to be issuable under performance stock unit awards, the treasury stock method is then applied to determine the dilutive impact of the awards, if any. Unvested restricted stock awards are considered potential common shares as well as participating securities, as discussed previously, and are included in diluted EPS using the more dilutive of the treasury stock method or the two-class method. Since these awards share in dividends on a 1:1 basis with common shares, applying the treasury stock method is antidilutive compared to the basic EPS calculation that allocates earnings to participating securities under the two-class method discussed previously.

For the three and six months ended June 30, 2025, diluted EPS for Class A Common stock excluded all outstanding awards of potential common stock because of the allocated net loss discussed above, and, therefore, the inclusion of any potential common shares would be antidilutive. Excluded Class A common stock awards were 649 thousand options to purchase Class A common stock, 1,113 thousand RSUs, and 3,008 thousand PSUs (at target). Excluded Class B common stock awards were 139 thousand options to receive Class B common stock, 37 thousand RSUs, and 229 thousand PSUs (at target). For the three months and six months ended June 30, 2024, diluted EPS for Class A common stock excluded the RSUs and PSUs granted in the first quarter of 2024, as discussed in Note 6, because the effect would have been antidilutive. No potential common shares were excluded from the calculation of diluted EPS for Class B common stock.