ADVANCED ENERGY INDUSTRIES INC Earnings Per Share Disclosure
NOTE 6. EARNINGS PER SHARE
We compute basic earnings per share (“EPS”) by dividing income available to common stockholders by the weighted-average number of common shares outstanding during the period. The diluted EPS computation is similar to basic EPS except we increase the denominator to include the number of additional common shares that would have been outstanding (using the if-converted and treasury stock methods) if our outstanding stock options and restricted stock units had been converted to common shares (when such conversion is dilutive).
The following table summarizes our earnings per share:
Years Ended December 31, | |||||||||
| 2022 |
| 2021 |
| 2020 | ||||
Income from continuing operations | $ | 201,891 | $ | 134,707 | $ | 135,151 | |||
Less: income from continuing operations attributable to noncontrolling interest |
| 16 |
| 44 |
| 55 | |||
Income from continuing operations attributable to Advanced Energy Industries, Inc. | $ | 201,875 | $ | 134,663 | $ | 135,096 | |||
Basic weighted-average common shares outstanding |
| 37,463 |
| 38,143 |
| 38,314 | |||
Assumed exercise of dilutive stock options and restricted stock units |
| 258 |
| 212 |
| 228 | |||
Diluted weighted-average common shares outstanding |
| 37,721 |
| 38,355 |
| 38,542 | |||
Continuing operations: |
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|
|
|
|
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Basic earnings per share | $ | 5.39 | $ | 3.53 | $ | 3.53 | |||
Diluted earnings per share | $ | 5.35 | $ | 3.51 | $ | 3.51 | |||
Share Repurchases
To execute the repurchase of shares of our common stock, we periodically enter into stock repurchase agreements. The following table summarizes these repurchases:
Years Ended December 31, | |||||||||
(in thousands, except per share amounts) |
| 2022 |
| 2021 |
| 2020 | |||
Amount paid or accrued to repurchase shares | $ | 26,635 | $ | 78,125 | $ | 11,630 | |||
Number of shares repurchased |
| 356 |
| 901 |
| 244 | |||
Average repurchase price per share | $ | 74.90 | $ | 86.76 | $ | 47.75 | |||
There were no shares repurchased from related parties. Repurchased shares were retired and assumed the status of authorized and unissued shares.
In July 2022, the Board of Directors approved an increase to the share repurchase plan that increased the remaining amount authorized for future repurchases to a maximum of $200.0 million with no time limitation. At December 31, 2022, the remaining amount authorized by the Board of Directors for future share repurchases was $199.3 million.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2022 | Feb 17, 2023 | Showing above |
| 2021 | Mar 16, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 15, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 25, 2016 | |
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.