Note M - Common Stock and Earnings Per Share

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE M—COMMON STOCK AND EARNINGS PER SHARE

Earnings per Share

The calculation of basic and diluted earnings per common share is as follows (in thousands, except per share amounts):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Numerator:
Earnings from continuing operations - basic	$	7,428	$	38,022	$	16,047	$	58,163
Gain from stock warrants revaluation, net of tax	$	—	$	—	$	—	$	(148	)
Convertible debt interest charge, net of tax	$	158	$	780	$	317	$	1,556
Earnings from continuing operations - diluted	$	7,586	$	38,802	$	16,364	$	59,571
Denominator:
Weighted-average shares outstanding for basic earnings per share		65,028		70,722		65,000		71,259
Common equivalent shares:
Effect of stock-based compensation awards and warrants		573		682		568		1,906
Effect of convertible debt		1,700		8,111		1,700		8,111
Weighted-average shares outstanding assuming dilution		67,301		79,515		67,268		81,276
Basic earnings per share from continuing operations	$	0.11	$	0.54	$	0.25	$	0.82
Diluted earnings per share from continuing operations	$	0.11	$	0.49	$	0.24	$	0.73

Basic weighted average shares outstanding for purposes of basic earnings per share are less than the shares outstanding due to 727,954 shares and 482,010 shares of restricted stock for 2024 and 2023, respectively, which are accounted for as part of diluted weighted average shares outstanding in diluted earnings per share.  The warrants granted to a customer (see Note C to the accompanying unaudited condensed consolidated financial statements) as of June 30, 2024, would have resulted in 27.6 million additional shares of the common stock if the warrants were settled by tendering cash.

The determination of diluted earnings per share requires the exclusion of the fair value re-measurement of the stock warrants recorded as a liability (see Note C to the accompanying unaudited condensed consolidated financial statements), if such warrants have an anti-dilutive effect on earnings per share. The dilutive effect of the weighted-average diluted shares outstanding is calculated using the treasury method for periods in which equivalent shares have a dilutive effect on earnings per share. Under this method, the number of diluted shares is determined by dividing the assumed proceeds of the warrants recorded as a liability by the average stock price during the period and comparing that amount with the number of corresponding warrants outstanding.