Note 14 - Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

EARNINGS PER SHARE

NOTE 14—EARNINGS (LOSS) PER SHARE

Earnings per share (“EPS”) is not presented retrospectively for periods prior to the issuance of the tracking stock as the tracking stock was not a part of the Company’s capital structure during those periods and the issuance of the tracking stock changes the common shareholders’ relative residual interest in the Company. Therefore, EPS is presented for the Company’s single class of common stock up to the time the tracking stock was issued. EPS is presented prospectively under the two-class method starting on the date of initial distribution of the tracking stock. Refer to Note 9 for information related to the Company’s tracking stock.

The computation of basic and diluted EPS is shown on the following page:

(In thousands, except per share amounts)	Years ended December 31,
	2023		2022		2021
Earnings attribution
Single class of common stock (through 6/20/2023) *	$	31,382	$	116,042	$	39,759
Class A common stock (6/21/2023 - 12/31/2023)		44,663		—		—
Class A restricted stock awards (6/21/2023 - 12/31/2023)		1,897		—		—
Class B common stock (6/21/2023 - 12/31/2023)		3,498		—		—
Class B restricted stock awards (6/21/2023 - 12/31/2023)		144		—		—
Forfeitable dividends declared on unvested stock-based awards		729		—		—
Net income	$	82,313	$	116,042	$	39,759
* Common stock and restricted stock participated in earnings 1:1 and are shown on a combined basis through 6/20/2023 consistent with historical presentation
	Jan. 1 - June 20,		Years ended December 31,
	2023		2022		2021
EPS data for single class of common stock through 6/20/2023
Numerator
Net earnings	$	31,382	$	116,042	$	39,759
Denominator
Weighted average shares used to compute basic earnings per share *		44,344		44,164		43,964
Dilutive effect of stock option awards		381		532		293
Dilutive effect of restricted stock units		—		6		—
Dilutive effect of performance stock units		27		—		—
Weighted average shares used to compute diluted earnings per share		44,752		44,702		44,257
Earnings per common share (single class of common stock)
Basic	$	0.71	$	2.63	$	0.90
Diluted	$	0.70	$	2.60	$	0.90
	June 21, 2023 - December 31, 2023
	Class A		Class B
EPS data for dual-class common stock 6/21/2023 - 12/31/2023
Numerator
Net earnings	$	44,663	$	3,498
Denominator
Weighted average shares used to compute basic earnings per share **		42,115		8,428
Dilutive effect of stock option awards		482		111
Dilutive effect of restricted stock units		157		48
Dilutive effect of performance stock units		436		111
Weighted average shares used to compute diluted earnings per share		43,190		8,698
Earnings per common share (dual-class structure)
Basic	$	1.06	$	0.42
Diluted	$	1.03	$	0.40
** Does not include unvested restricted stock, which averaged 1.8 million and 0.4 million for Class A and Class B, respectively, for the period June 21, 2023 through December 31, 2023

Unvested restricted stock awards have the right to receive nonforfeitable dividends on the same basis as common shares; therefore, unvested restricted stock is considered a participating security for the purpose of calculating EPS. Historically, the Company has shown EPS for its common stock and unvested restricted stock on a combined basis since both instruments participate in net earnings on the same basis and the resulting EPS is typically the same. Starting under the two-class method, the Company reports separately the net earnings allocated away from holders of Class A and Class B common stock to holders of unvested restricted stock awards.

Unvested restricted stock units and performance stock units include forfeitable dividend rights that are subject to the vesting conditions of the underlying awards; therefore, these awards are not considered participating securities and should not be allocated undistributed earnings for the purpose of calculating EPS. However, dividends or dividend equivalents declared and charged to retained earnings for these awards reduce the amount of net earnings available for distribution to common stockholders and should be reflected as such under the two-class method.

For accounting purposes, Class B’s participation rights are, in substance, discretionary based on the power of the Company’s Board of Directors to add or modify expense allocation policies, redefine CORE assets, and redetermine CORE’s per-ton usage fees at any time, in its sole discretion, without shareholder approval. Therefore, no amount of the Company’s net earnings shall be allocated to Class B for the purpose of calculating EPS other than actual dividends declared during the period for the tracking stock. Refer to Note 9 for information regarding dividends declared on Class B common stock.

Diluted EPS was calculated using the treasury stock method for stock options and restricted stock units. For performance stock units, the awards were first evaluated under the contingently issuable shares guidance, which requires a determination as to whether shares would be issuable if the end of the reporting period were the end of the contingency period. For shares determined to be issuable under performance stock unit awards, the treasury stock method was then applied to determine the dilutive impact of the awards, if any. Unvested restricted stock awards are considered potential common shares as well as participating securities, as discussed previously, and were included in diluted EPS using the more dilutive of the treasury stock method or the two-class method. Since these awards share in dividends on a 1:1 basis with common shares, applying the treasury stock method would be antidilutive compared to the basic EPS calculation that allocates earnings to participating securities under the two-class method discussed previously.

Diluted EPS for the period from January 1, 2023 through June 20, 2023, the period for which a single class of common stock existed, excluded all outstanding restricted stock units, or 684,151 units in total, because the effect would have been antidilutive under the treasury stock method. In addition, diluted EPS for the same period excluded outstanding performance stock units originally granted in 2022, or 248,706 units at target, based on the guidance for contingently issuable shares, which requires exclusion when shares would not be issuable if the end of the reporting period were the end of the contingency period.

For the period from June 21,2023 through December 31, 2023, the Company’s ability to convert Class B common shares into Class A common shares, as discussed previously in Note 9, is a contingency that will not be reflected in the diluted EPS for Class A under the if-converted method until such time that the required Board resolutions occur, if ever.

Diluted EPS for 2022 excluded 248,706 of target performance stock units based on the guidance for contingently issuable shares discussed earlier.