Note M - Earnings Per Share

9 Months Ended

Mar. 26, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

M. Earnings Per Share

The Company calculates basic earnings per share based upon the weighted average number of common shares outstanding during the period, while the calculation of diluted earnings per share includes the dilutive effect of potential common shares outstanding during the period. The calculation of diluted earnings per share excludes all potential common shares if their inclusion would have an anti-dilutive effect. Certain restricted stock award recipients have a non-forfeitable right to receive dividends declared by the Company, and are therefore included in computing earnings per share pursuant to the two-class method. 

The components of basic and diluted earnings per share were as follows:

	For the Quarter Ended						For the Three Quarters Ended
	March 26, 2021			March 27, 2020			March 26, 2021			March 27, 2020
Basic:
Net income (loss)	$	166		$	(25,176	)	$	(8,051	)	$	(37,935	)
Less: Net earnings attributable to noncontrolling interest		(72	)		(54	)		(147	)		(122	)
Less: Undistributed earnings attributable to unvested shares		-			-			-			-
Net income (loss) available to Twin Disc shareholders		94			(25,230	)		(8,198	)		(38,057	)
Weighted average shares outstanding - basic		13,269			13,175			13,240			13,147
Basic Income (Loss) Per Share:
Net income (loss) per share - basic	$	0.01		$	(1.92	)	$	(0.62	)	$	(2.89	)
Diluted:
Net income (loss)	$	166		$	(25,176	)	$	(8,051	)	$	(37,935	)
Less: Net earnings attributable to noncontrolling interest		(72	)		(54	)		(147	)		(122	)
Less: Undistributed earnings attributable to unvested shares		-			-			-			-
Net income (loss) available to Twin Disc shareholders		94			(25,230	)		(8,198	)		(38,057	)
Weighted average shares outstanding - basic		13,269			13,175			13,240			13,147
Effect of dilutive stock awards		26			-			-			-
Weighted average shares outstanding - diluted		13,295			13,175			13,240			13,147
Diluted Income (Loss) Per Share:
Net income (loss) per share - diluted	$	0.01		$	(1.92	)	$	(0.62	)	$	(2.89	)

The following potential common shares were excluded from diluted EPS for the quarter ended March 26, 2021 because they were anti-dilutive, and for the three quarters ended March 26, 2021 as the Company reported a net loss: 433.1 related to the Company’s unvested PSAs, 377.5 related to the Company’s unvested RS awards, and 9.1 and 34.8, respectively, related to the Company’s unvested RSUs.

The following potential common shares were excluded from diluted EPS for the quarter and three quarters ended March 27, 2020 as the Company reported a net loss: 214.0 related to the Company’s unvested PSAs, 231.4 related to the Company’s unvested RS awards, and 38.0 related to the Company’s unvested RSUs.