AMREP CORP. Earnings Per Share Disclosure
(14) EARNINGS PER SHARE
Earnings per share – basic is calculated by dividing net income by the weighted-average number of common shares outstanding during the period. The weighted-average number of common shares outstanding during the period includes shares issuable upon settlement of deferred stock units but does not include unvested shares of restricted common stock or shares issuable upon the exercise of stock options. The components of earnings per share – basic are as follows (amounts in thousands, except per share amounts):
| Year Ended April 30, | |||||
2025 |
| 2024 | ||||
Numerator: |
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|
|
| ||
Net income | $ | 12,716 | $ | 6,690 | ||
Denominator: |
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|
|
| ||
Weighted average number of common shares outstanding – basic |
| 5,318 |
| 5,300 | ||
Earnings per share – basic | $ | 2.39 | $ | 1.26 | ||
Earnings per share – diluted is calculated by dividing net income by the sum of (1) the weighted-average number of common shares outstanding during the period plus (2) the dilutive effects of unvested shares of restricted common stock, shares issuable upon the exercise of stock options that are in-the-money and other potentially dilutive instruments. The components of earnings per share – diluted are as follows (amounts in thousands, except per share amounts):
| Year Ended April 30, | |||||
2025 |
| 2024 | ||||
Numerator: |
|
|
|
| ||
Net income | $ | 12,716 | $ | 6,690 | ||
Denominator: |
|
|
|
| ||
Weighted average number of common shares outstanding – basic |
| 5,318 |
| 5,300 | ||
Dilutive effect of unvested shares of restricted common stock |
| 31 |
| 30 | ||
Dilutive effect of shares issuable upon the exercise of stock options that are in-the-money |
| 20 |
| 17 | ||
Weighted average number of common shares outstanding – diluted |
| 5,369 |
| 5,347 | ||
Earnings per share – diluted | $ | 2.37 | $ | 1.25 | ||
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.