Note J - Earnings Per Share

6 Months Ended

Jun. 30, 2023

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 December 2022, we repurchased all 9,926 shares of the Company’s Series A Preferred Stock then outstanding.

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	2023		2022
Numerator:
Net income	$	580	$	4,461
Less: Preferred stock dividends		—		124
Less: Earnings attributable to participating securities		—		542
Numerator for basic EPS: income attributable to common stockholders		580	$	3,795
Effect of dilutive securities:
Add back: Allocation of earnings to participating securities		—		542
Less: Re-allocation of earnings to participating securities considering potentially dilutive securities		—		(518	)
Numerator for diluted EPS		580		3,819
Denominator:
Basic EPS denominator: weighted-average common shares outstanding		7,358		7,017
Diluted EPS denominator		7,505		7,388
Basic income per Common Share	$	0.08	$	0.54
Diluted income per Common Share	$	0.08	$	0.52

For the three months ended June 30, 2023 and 2022, respectively, the following shares have been excluded from the calculation of shares used in the diluted EPS calculation: 7,428 and 13,063 shares of anti-dilutive market price options; 45,338 and 0 of anti-dilutive unvested restricted shares; and 0 and 1,001,614 shares of anti-dilutive Series A Preferred Stock (as if converted).

	Six Months Ended June 30,
In thousands, except per share amounts	2023			2022
Numerator:
Net (loss) income	$	(211	)	$	7,806
Less: Preferred stock dividend		—			246
Less: Earnings attributable to common stockholders		—			946
Numerator for basic EPS: (loss) income attributable to common stockholders		(211	)		6,614
Effect of dilutive securities:
Add back: Allocation of earnings to participating securities		—			946
Less: Re-allocation of earnings to participating securities considering potentially dilutive securities		—			(908	)
Numerator for diluted EPS	$	(211	)	$	6,652
Denominator:
Basic EPS denominator: weighted-average common shares outstanding		7,392			7,004
Diluted EPS denominator		7,392			7,338
Basic (loss) income per Common Share	$	(0.03	)	$	0.94
Diluted (loss) income per Common Share	$	(0.03	)	$	0.91

For the six months ended June 30, 2023 and 2022, respectively, the following shares have been excluded from the calculation of shares used in the diluted EPS calculation: 8,668 and 15,074 shares of anti-dilutive market price options; 45,906 and 76,925 of anti-dilutive unvested restricted shares; and 0 and 1,001,614 shares of anti-dilutive Series A Preferred Stock (as if converted).