Earnings per Ordinary Share
Basic earnings per ordinary share are calculated by dividing net income available to holders of Aspen Holdings’ ordinary shares by the weighted average number of ordinary shares outstanding. Net income available to ordinary shareholders is calculated by deducting preference share dividends and net income/(loss) attributable to non-controlling interest from net income/(loss) after tax for the period. Diluted earnings per ordinary share are based on the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the period of calculation using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share for the twelve months ended December 31, 2018, 2017, and 2016, respectively:
 
 
Twelve Months Ended December 31,
 
 
2018
 
2017
 
2016
 
 
 
 
 
 
 
 
 
 
Net (loss)/income
 
$
(145.8
)
 
$
(266.4
)
 
$
203.4

Preference share dividends
 
(30.5
)
 
(36.2
)
 
(41.8
)
Preference share redemption costs (1)
 

 
(8.0
)
 

Net profit attributable to non-controlling interest
 
(1.0
)
 
(1.3
)
 
(0.1
)
Basic and diluted net (loss)/income available to ordinary shareholders
 
$
(177.3
)
 
$
(311.9
)
 
$
161.5

Ordinary shares:
 
 
 
 
 
 
Basic weighted average ordinary shares
 
59,655,507

 
59,753,886

 
60,478,740

Weighted average effect of dilutive securities (2) (3)
 

 

 
1,381,949

Total diluted weighted average ordinary shares
 
59,655,507

 
59,753,886

 
61,860,689

(Loss) Earnings per ordinary share:
 

 
 
 
 
Basic
 
$
(2.97
)
 
$
(5.22
)
 
$
2.67

Diluted (3)
 
$
(2.97
)
 
$
(5.22
)
 
$
2.61

 _______________
(1) 
The $8.0 million deduction from net income in 2017 is attributable to the reclassification from additional paid-in capital to retained earnings representing the difference between the capital raised upon issuance of the 7.401% Preference Shares and 7.250% Preference Shares, net of issuance costs, and the final redemption costs of $293.2 million.
(2) 
Dilutive securities consist of employee restricted share units and performance shares associated with the Company’s long term incentive plan, employee share purchase plans and director restricted stock units and options as described in Note 17.
(3) 
The basic and diluted number of ordinary shares is the same in 2018 and 2017 because the inclusion of dilutive securities in a loss making period would be anti-dilutive.
Dividends. On February 6, 2019, the Company’s Board of Directors declared the following dividends:
 
 
Dividend
 
Payable on:
 
Record Date:
5.95% Preference Shares
 
$
0.3719

 
April 1, 2019
 
March 15, 2019
5.625% Preference Shares
 
$
0.3516

 
April 1, 2019
 
March 15, 2019

The Merger Agreement, dated August 27, 2018, restricts the Company from declaring or paying any dividends other than the quarterly dividends on Aspen’s ordinary shares that were previously declared and publicly announced prior to the date of the Merger Agreement and periodic cash dividends on the Preference Shares in accordance with the terms of the applicable certificate of designation.

Historical Timeline

Fiscal YearFiled
2018Feb 13, 2019Showing above
2017Feb 22, 2018
2016Feb 22, 2017
2015Feb 19, 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.