Note M - Common Stock and Earnings Per Share

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE M—COMMON STOCK AND EARNINGS PER SHARE

Earnings per Share

The calculation of basic and diluted earnings per common share is as follows (in thousands, except per share amounts):

	Three Months Ended
	March 31,
	2024		2023
Numerator:
Earnings from continuing operations - basic	$	8,619	$	20,141
Gain from stock warrants revaluation, net of tax	$	—	$	(108	)
Convertible debt interest charge, net of tax	$	159	$	776
Earnings from continuing operations - diluted	$	8,778	$	20,809
Denominator:
Weighted-average shares outstanding for basic earnings per share		64,973		71,802
Common equivalent shares:
Effect of stock-based compensation awards and warrants		562		3,144
Effect of convertible debt		1,700		8,111
Weighted-average shares outstanding assuming dilution		67,235		83,057
Basic earnings per share from continuing operations	$	0.13	$	0.28
Diluted earnings per share from continuing operations	$	0.13	$	0.25

Basic weighted average shares outstanding for purposes of basic earnings per share are less than the shares outstanding due to 700,271 shares and 226,149 shares of restricted stock for 2024 and 2023, respectively, which are accounted for as part of diluted weighted average shares outstanding in diluted earnings per share.

The determination of diluted earnings per share requires the exclusion of the fair value re-measurement of the stock warrants recorded as a liability (see Note C), if such warrants have an anti-dilutive effect on earnings per share. The dilutive effect of the weighted-average diluted shares outstanding is calculated using the treasury method for periods in which equivalent shares have a dilutive effect on earnings per share. Under this method, the number of diluted shares is determined by dividing the assumed proceeds of the warrants recorded as a liability by the average stock price during the period and comparing that amount with the number of corresponding warrants outstanding.