Note 5 - Earnings Per Share

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Earnings Per Share [Text Block]

5. Earnings Per Share

On January 28, 2019, MDC’s board of directors approved an 8% stock dividend that was distributed on February 28, 2019 to shareholders of record on February 14, 2019. Additionally, on November 20, 2017, MDC’s board of directors approved an 8% stock dividend that was distributed on December 19, 2017 to shareholders of record on December 5, 2017. In accordance with ASC 260, basic and diluted earnings per share amounts, weighted-average shares outstanding, and dividends declared per share have been restated for all appropriate periods presented to reflect the effect of these stock dividends. The following table shows our basic and diluted EPS calculations:

	Year Ended December 31,
	2019			2018			2017
	(Dollars in thousands, except per share amounts)
Numerator
Net income	$	238,312		$	210,780		$	141,835
Less: distributed earnings allocated to participating securities		(466	)		(413	)		(257	)
Less: undistributed earnings allocated to participating securities		(1,020	)		(846	)		(441	)
Net income attributable to common stockholders (numerator for basic earnings per share)		236,826			209,521			141,137
Add back: undistributed earnings allocated to participating securities		1,020			846			441
Less: undistributed earnings reallocated to participating securities		(992	)		(833	)		(431	)
Numerator for diluted earnings per share under two class method	$	236,854		$	209,534		$	141,147
Denominator
Weighted-average common shares outstanding		61,616,988			60,571,123			60,117,021
Add: dilutive effect of stock options		1,737,945			984,076			1,336,557
Add: dilutive effect of performance share units		347,733			275,562			-
Denominator for diluted earnings per share under two class method		63,702,666			61,830,761			61,453,578
Basic Earnings Per Common Share	$	3.84		$	3.46		$	2.35
Diluted Earnings Per Common Share	$	3.72		$	3.39		$	2.30

Diluted EPS for the years ended December 31, 2019, 2018 and 2017 excluded options to purchase approximately 0.4 million, 0.7 million, 0.8 million shares, respectively, of common stock because the effect of their inclusion would be anti-dilutive.