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Earnings per Share
 9 Months Ended
Jun. 30, 2018
Earnings per Share  
Earnings per Share

4.Earnings per Share

 

ASC 260, Earnings per Share, requires companies to treat unvested share-based payment awards that have non-forfeitable rights to dividends or dividend equivalents as a separate class of securities in calculating earnings per share.  We have granted and expect to continue to grant to employees restricted stock grants that contain non-forfeitable rights to dividends.  Such grants are considered participating securities under ASC 260.  As such, we are required to include these grants in the calculation of our basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

 

Basic earnings per share is computed utilizing the two-class method and is calculated based on the weighted-average number of common shares outstanding during the periods presented.

 

Diluted earnings per share is computed using the weighted-average number of common and common equivalent shares outstanding during the periods utilizing the two-class method for stock options and nonvested restricted stock.

 

Under the two-class method of calculating earnings per share, dividends paid and a portion of undistributed net income, but not losses, are allocated to unvested restricted stock grants that receive dividends, which are considered participating securities.

 

The following table sets forth the computation of basic and diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

June 30, 

 

June 30, 

 

 

    

2018

    

2017

    

2018

    

2017

 

 

 

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from continuing operations

 

$

(8,174)

 

$

(23,125)

 

$

490,835

 

$

(106,152)

 

Income (loss) from discontinued operations

 

 

166

 

 

1,326

 

 

(10,616)

 

 

472

 

Net (loss) income

 

 

(8,008)

 

 

(21,799)

 

 

480,219

 

 

(105,680)

 

Adjustment for basic earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings allocated to unvested shareholders

 

 

(717)

 

 

(458)

 

 

(4,241)

 

 

(1,349)

 

Numerator for basic earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

From continuing operations

 

 

(8,891)

 

 

(23,583)

 

 

486,594

 

 

(107,501)

 

From discontinued operations

 

 

166

 

 

1,326

 

 

(10,616)

 

 

472

 

 

 

 

(8,725)

 

 

(22,257)

 

 

475,978

 

 

(107,029)

 

Adjustment for diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of reallocating undistributed earnings of unvested shareholders

 

 

 —

 

 

 —

 

 

10

 

 

 —

 

Numerator for diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

From continuing operations

 

 

(8,891)

 

 

(23,583)

 

 

486,604

 

 

(107,501)

 

From discontinued operations

 

 

166

 

 

1,326

 

 

(10,616)

 

 

472

 

 

 

$

(8,725)

 

$

(22,257)

 

$

475,988

 

$

(107,029)

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator for basic earnings per share - weighted-average shares

 

 

108,905

 

 

108,572

 

 

108,818

 

 

108,470

 

Effect of dilutive shares from stock options and restricted stock

 

 

 —

 

 

 —

 

 

520

 

 

 —

 

Denominator for diluted earnings per share - adjusted weighted-average shares

 

 

108,905

 

 

108,572

 

 

109,338

 

 

108,470

 

Basic earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from continuing operations

 

$

(0.08)

 

$

(0.22)

 

$

4.47

 

$

(0.99)

 

Income (loss) from discontinued operations

 

 

 —

 

 

0.01

 

 

(0.10)

 

 

 —

 

Net (loss) income

 

$

(0.08)

 

$

(0.21)

 

$

4.37

 

$

(0.99)

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from continuing operations

 

$

(0.08)

 

$

(0.22)

 

$

4.45

 

$

(0.99)

 

Income (loss) from discontinued operations

 

 

 —

 

 

0.01

 

 

(0.10)

 

 

 —

 

Net (loss) income

 

$

(0.08)

 

$

(0.21)

 

$

4.35

 

$

(0.99)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

We had a net loss for the three months ended June 30, 2018 and three and nine months ended June 30, 2017.  Accordingly, our diluted earnings per share calculation for these periods were equivalent to our basic earnings per share calculation since diluted earnings per share excluded any assumed exercise of equity awards.  These were excluded because they were deemed to be anti-dilutive, meaning their inclusion would have reduced the reported net loss per share in the applicable period.

 

The following shares attributable to outstanding equity awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

June 30, 

 

June 30, 

 

 

    

2018

    

2017

    

2018

    

2017

 

 

 

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares excluded from calculation of diluted earnings per share

 

 

929

 

 

1,332

 

 

1,585

 

 

1,034

 

Weighted-average price per share

 

$

75.56

 

$

70.82

 

$

68.51

 

$

73.84