Note J - Earnings Per Share

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

Note J — Earnings Per Share

In periods in which the Company has net income, the Company is required to calculate earnings per share (“EPS”) using the two-class method. The two-class method is required because the Company’s Series A Preferred Stock is considered a participating security with objectively determinable and non-discretionary dividend participation rights. Series A Preferred stockholders have the right to participate in dividends above their five percent dividend rate should the Company declare dividends on its common stock at a dividend rate higher than the five percent (on an as-converted basis). Under the two-class method, undistributed and distributed earnings are allocated on a pro-rata basis to the common and the preferred stockholders. The weighted-average number of common and preferred stock outstanding during the period is then used to calculate EPS for each class of shares.

In periods in which the Company has a net loss, basic loss per share is calculated using the treasury stock method. The treasury stock method is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period. The two-class method is not used, because the calculation would be anti-dilutive.

Reconciliations of basic and diluted EPS are as follows:

	Year Ended December 31,
In thousands, except per share amounts	2022		2021
Numerator:
Net income	$	36,776	$	14,971
Less: Loss from redemption of Preferred stock		1,380		—
Less: Preferred stock dividend		—		496
Less: Earnings attributable to participating securities		—		1,858
Numerator for basic EPS: income attributable to common stockholders		35,396		12,617
Effect of dilutive securities:
Add back: Allocation of earnings to participating securities		—		1,858
Less: Re-allocation of earnings to participating securities considering potentially dilutive securities		—		(1,766	)
Numerator for diluted EPS	$	35,396	$	12,709
Denominator:
Basic EPS denominator: weighted-average common shares outstanding		7,101		6,802
Diluted EPS denominator		7,457		7,209
Basic income per common share	$	4.98	$	1.85
Diluted income per common share	$	4.75	$	1.76

For the years ended  December 31, 2022 and 2021, respectively, the following shares have been excluded from the calculation of shares used in the diluted EPS calculation: 13,366 and 46,380 shares of anti-dilutive market price options; 24,918 and 29,983 anti-dilutive unvested shares.