Earnings (Loss) Per Common Share

9 Months Ended

Mar. 31, 2018

Earnings (Loss) Per Common Share

Earnings (Loss) Per Common Share

Note 15.  Earnings (Loss) Per Common Share

A dual presentation of basic and diluted earnings (loss) per common share is required on the face of the Company’s Consolidated Statement of Operations as well as a reconciliation of the computation of basic earnings per common share to diluted earnings per common share.  Basic earnings (loss) per common share excludes the dilutive impact of potentially dilutive securities and is computed by dividing net income (loss) attributable to Lannett Company, Inc. by the weighted average number of common shares outstanding for the period.  Diluted earnings (loss) per common share is computed using the treasury stock method and includes the effect of potential dilution from the exercise of outstanding stock options, a warrant and treats unvested restricted stock and performance-based shares as if they were vested.  Potentially dilutive securities have been excluded in the weighted average number of common shares used for the calculation of earnings per share in periods of net loss because the effect of including such securities would be anti-dilutive.  A reconciliation of the Company’s basic and diluted earnings (loss) per common share was as follows:

	Three Months Ended March 31,
(In thousands, except share and per share data)	2018		2017
Net income attributable to Lannett Company, Inc.	$	12,770	$	14,929
Basic weighted average common shares outstanding	37,136,945		36,849,208
Effect of potentially dilutive stock options, warrants and restricted stock awards	1,150,060		903,096
Diluted weighted average common shares outstanding	38,287,005		37,752,304
Earnings per common share attributable to Lannett Company, Inc.:
Basic	$	0.34	$	0.41
Diluted	$	0.33	$	0.40

	Nine Months Ended March 31,
(In thousands, except share and per share data)	2018		2017
Net income (loss) attributable to Lannett Company, Inc.	$	40,049	$	(6,307	)
Basic weighted average common shares outstanding	37,064,781		36,785,829
Effect of potentially dilutive stock options, warrants and restricted stock awards	1,047,412		—
Diluted weighted average common shares outstanding	38,112,193		36,785,829
Earnings (loss) per common share attributable to Lannett Company, Inc.:
Basic	$	1.08	$	(0.17	)
Diluted	$	1.05	$	(0.17	)

The number of anti-dilutive shares that have been excluded in the computation of diluted earnings per share for the three months ended March 31, 2018 and 2017 was 3.0 million.  The number of anti-dilutive shares that have been excluded in the computation of diluted earnings per share for the nine months ended March 31, 2018 and 2017 was 3.0 million and 4.4 million, respectively.