Note 5 - Income Per Common Share

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 5.    Income Per Common Share

We calculate basic income per common share on the basis of the weighted average number of shares of common stock outstanding during the period. Diluted income per share is calculated using the weighted average number of shares of common stock outstanding during the period plus the effect of potential dilutive common shares during the period using the treasury stock and if-converted methods.

Potential dilutive shares of common stock include outstanding unvested restricted stock awards, performance-based share awards, stock units, warrants and convertible preferred stock for periods in which we have reported net income. For periods in which we report net losses, potential dilutive shares of common stock are excluded, as their conversion and exercise would be anti-dilutive.

The following table represents net income per common share – basic and diluted (in thousands, except income (loss) per share): 

	Three Months Ended March 31,
	2022			2021
Numerator
Net income	$	4,153		$	21,451
Preferred stock dividends		(138	)		(138	)
Net income applicable to common shares	$	4,015		$	21,313
Denominator
Basic weighted average common shares		538,490			534,101
Dilutive incentive compensation units, warrants and deferred shares		5,571			6,426
Diluted weighted average common shares		544,061			540,527
Basic income per common share	$	0.01		$	0.04
Diluted income per common share	$	0.01		$	0.04

Diluted income per common share for the three-month periods ended March 31, 2022 and 2021 excludes the potential effects of outstanding shares of our convertible preferred stock, as their conversion would have no effect on the calculation of dilutive shares.

For the three months ended March 31, 2022, the calculation of diluted income per common share included (i) 1,954,773 incentive compensation units that were unvested during the period, (ii) 1,506,950 warrants to purchase one share of common stock and (iii) 2,109,056 deferred shares that were dilutive.  For the three months ended March 31, 2021, the calculation of diluted income per common share included (i) 2,863,038 incentive compensation units that were unvested during the period, (ii) 1,536,615 warrants to purchase one share of common stock and (iii) 2,026,440 deferred shares that were dilutive.