Note 9 - Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 9 – Net Income (Loss) Per Share:

The Company’s basic net income per share is computed based on the weighted average number of shares of common stock outstanding for the period. Diluted net income per share includes the effect of the Company’s outstanding stock options, stock appreciation rights, unvested shares of restricted stock and unvested performance shares, if the inclusion of these items is dilutive.

The following table presents a reconciliation of basic and diluted net income (loss) per share for the periods presented:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2022			2021		2022			2021
Net income (loss) used in the computation of basic and diluted net income (loss) per share (in thousands)	$	(12,719	)	$	8,196	$	(34,164	)	$	25,051
Weighted average shares outstanding - basic		15,806,852			15,528,534		15,739,381			15,394,427
Dilutive common stock equivalents		-			571,316		-			665,259
Weighted average shares outstanding - diluted		15,806,852			16,099,850		15,739,381			16,059,686
Net income (loss) per share:
Basic	$	(0.80	)	$	0.53	$	(2.17	)	$	1.63
Diluted	$	(0.80	)	$	0.51	$	(2.17	)	$	1.56

Diluted weighted average shares outstanding excludes shares of common stock of 389,915 and 455,774 for the three and nine months ended September 30, 2022, respectively, as their inclusion would have been antidilutive given the Company’s net loss.

Awards to purchase 683,499 and 251,989 shares of common stock with weighted average exercise prices of $21.37 and $24.88 per share were outstanding during the three months ended September 30, 2022 and 2021, respectively, but were not included in the computation of diluted net income per share because the awards’ exercise prices were greater than the average market price of the common shares.

Awards to purchase 577,478 and 176,713 shares of common stock with weighted average exercise prices of $22.17 and $25.35 per share were outstanding during the nine months ended September 30, 2022 and 2021, respectively, but were not included in the computation of diluted net income (loss) per share because the awards’ exercise prices were greater than the average market price of the common shares.