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Note J - Earnings Per Share
6 Months Ended
Jun. 30, 2020
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 were as follows:
 
   
Three Months Ended June 30,
 
In thousands, except per share amounts
 
2020
   
2019
 
Numerator:                
Net loss
  $
(6,235
)   $
(3,803
)
Less: Preferred stock dividends
   
123
     
124
 
Numerator for basic EPS: loss attributable to common stockholders
   
(6,358
)    
(3,927
)
                 
Denominator:
     
 
     
 
Basic EPS denominator: weighted-average common shares outstanding
   
6,453
     
6,272
 
                 
Diluted EPS denominator    
6,453
     
6,272
 
                 
Basic loss per Common Share
  $
(0.99
)   $
(0.63
)
Diluted loss per Common Share
  $
(0.99
)   $
(0.63
)
 
For the
three
months ended
June 30, 2020
and
2019
, respectively, the following shares have been excluded from the calculation of shares used in the diluted EPS calculation:
0.1
 million and
0.1
 million shares of anti-dilutive market price options;
0.3
 million and
0.2
 million of anti-dilutive unvested shares; and
1.0
million and
1.0
million shares of anti-dilutive preferred stock (as if converted).
 
   
Six Months Ended June 30,
 
In thousands, except per share amounts
 
2020
   
2019
 
Numerator:
               
Net loss
  $
(1,117
)   $
(17,330
)
Less: Preferred stock dividend
   
247
     
246
 
Numerator for basic EPS: loss attributable to common stockholders
   
(1,364
)    
(17,576
)
                 
Denominator:
               
Basic EPS denominator: weighted-average common shares outstanding
   
6,386
     
6,270
 
                 
Diluted EPS denominator
   
6,386
     
6,270
 
                 
Basic loss per Common Share
  $
(0.21
)   $
(2.80
)
Diluted loss per Common Share
  $
(0.21
)   $
(2.80
)
 
For the
six
 months ended
June 30, 2020
and
2019
, respectively, the following shares have been excluded from the calculation of shares used in the diluted EPS calculation:
0.1
million and
0.3
 million shares of anti-dilutive market price options;
0.4
 million and
0.2
 million of anti-dilutive unvested shares; and
1.0
million and
0
shares of anti-dilutive preferred stock (as if converted).