Note 13 - Earnings Per Share

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 13. Earnings Per Share

The Company uses the two-class method of calculating earnings per share because certain of the Company’s stock-based awards qualify as participating securities.

The Company’s basic earnings per share attributable to common stockholders is computed as (i) net income as reported, (ii) less participating basic earnings (iii) divided by weighted average basic common shares outstanding. The Company’s diluted earnings per share attributable to common stockholders is computed as (i) basic earnings attributable to common stockholders, (ii) plus reallocation of participating earnings (iii) divided by weighted average diluted common shares outstanding.

The following table reconciles the Company’s earnings from operations and earnings attributable to common stockholders to the basic and diluted earnings used to determine the Company’s earnings per share amounts for the three and six months ended June 30, 2025 and 2024 under the two-class method (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Net income as reported	$	26,176		$	29,717		$	62,511		$	36,155
Participating basic earnings (a)		(2,546	)		(2,860	)		(6,086	)		(3,466	)
Basic earnings attributable to common stockholders		23,630			26,857			56,425			32,689
Reallocation of participating earnings		32			36			78			37
Diluted net income attributable to common stockholders	$	23,662		$	26,893		$	56,503		$	32,726
Basic weighted average shares outstanding		123,930			125,341			123,922			125,341
Dilutive warrants and unvested stock options		—			1,753			82			1,770
Dilutive unvested restricted stock		2,165			2,154			2,165			2,154
Diluted weighted average shares outstanding		126,095			129,248			126,169			129,265

(a) Vested stock options represent participating securities because they participate in dividend equivalents with the common equity holders of the Company. Participating earnings represent the distributed and undistributed earnings of the Company attributable to the participating securities. Certain unvested restricted stock awarded to outside directors, employee members of the Board and certain employees do not represent participating securities because, while they participate in dividends with the common equity holders of the Company, the dividends associated with such unvested restricted stock are forfeitable in connection with the forfeitability of the underlying restricted stock. Unvested stock options do not represent participating securities because, while they participate in dividend equivalents with the common equity holders of the Company, the dividend equivalents associated with unvested stock options are forfeitable in connection with the forfeitability of the underlying stock options.

The calculation for weighted average shares reflects shares outstanding over the reporting period based on the actual number of days the shares were outstanding.