ATLANTIC AMERICAN CORPAAME

ATLANTIC AMERICAN CORP Earnings Per Share Disclosure

10-KFiled Mar 25, 20251 min read
Note 14.
Loss Per Common Share


Basic loss per share was computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period. The computation of diluted loss per share reflected the effect of potentially dilutive securities.


A reconciliation of the numerator and denominator of the loss per common share calculations is as follows:

  For the Year Ended December 31, 2024  
  Loss
Weighted
Average Shares
Outstanding
(In thousands)
  
Per Share
Amount
  
Basic and Diluted Loss Per Common Share
            
Net loss before preferred stock dividends
  
$
(4,268
)
    
20,400
      
-
  
Less preferred stock dividends
    
(399
)
    
—
          
Net loss applicable to common shareholders
  
$
(4,667
)
    
20,400
    
$
(0.23
)

 
For the Year Ended December 31, 2023
  
 
Loss
  
Weighted
Average Shares
Outstanding
(In thousands)
  
Per Share
Amount
  
Basic and Diluted Loss Per Common Share
           
Net loss before preferred stock dividends
  
$
(171
)
    
20,404
      
-
  
Less preferred stock dividends
    
(399
)
    
—
          
Net loss applicable to common shareholders
  
$
(570
)
    
20,404
    
$
(0.03
)


The assumed conversion of the Company’s Series D Preferred Stock was excluded from the earnings per common share calculation for 2024 and 2023 since its impact would have been antidilutive.

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

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