Earnings Per Common Share (EPS)

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Earnings Per Common Share (EPS)

11.EARNINGS PER COMMON SHARE (EPS)

The computation of weighted average shares outstanding and the basic and diluted earnings per common share for the years ended December 31, 2023, 2022 and 2021, consisted of the following (in thousands, except per share amounts):

	2023		2022		2021
Net income	$	94,411	$	74,516	$	48,454
Average common shares outstanding		57,593		56,806		56,145
Basic EPS	$	1.64	$	1.31	$	0.86
Average common shares outstanding		57,593		56,806		56,145
Effect of dilutive stock awards		763		865		1,214
Total potential shares outstanding		58,356		57,671		57,359
Diluted EPS	$	1.62	$	1.29	$	0.84
Equity awards excluded as the impact was anti-dilutive (1)		1,143		1,438		799

_______________________________________________

(1) Does not reflect the impact of incremental repurchases under the treasury stock method.

Convertible Notes

For our Convertible Notes issued in December 2023, the dilutive effect is calculated using the if-converted method. Upon surrender of the Convertible Notes for conversion, Merit will pay cash up to the aggregate principal amount of the Notes to be converted and pay or deliver, as the case may be, cash, shares of Merit’s common stock or a combination of cash and shares of Merit’s common stock, at Merit’s election, in respect of the remainder, if any, of Merit’s conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted. Under the if-converted method, we include the number of shares required to satisfy the remaining conversion obligation, assuming all the Convertible Notes were converted. The average closing prices of our common stock for the year ended December 31, 2023 were used as the basis for determining the dilutive effect on EPS. The average closing prices for our common stock did not exceed the conversion price of $86.83, and therefore all associated shares were anti-dilutive.