Civeo CorpCVEO
Civeo Corp Earnings Per Share Disclosure
EARNINGS PER SHARE
(1)Share-based awards for the year ended December 31, 2023 totaled fewer than 0.1 million shares.
For the years ended December 31, 2024 and 2023, we calculated our basic earnings per share by dividing net income (loss) attributable to common shareholders, before allocation of earnings to participating earnings by the weighted average number of common shares outstanding. For diluted earnings per share, the basic shares outstanding are adjusted by adding all potentially dilutive securities.
For the year ended December 31 2022, a period during which we had participating securities in the form of Class A preferred shares, we used the two-class method to calculate basic and diluted earnings per share. The two-class method requires a proportional share of net income to be allocated between common shares and participating securities. The proportional share to be allocated to participating securities is determined by dividing total weighted average participating securities by the sum of total weighted average common shares and participating securities.
Basic earnings per share is computed under the two-class method by dividing the net income (loss) attributable to common shareholders, after allocation of earnings to participating earnings by the weighted average number of common shares outstanding during the period. Net income attributable to common shareholders, after allocation of earnings to participating earnings represents our net income reduced by an allocation of current period earnings to participating securities as described above. No such adjustment is made during periods with a net loss, as the adjustment would be anti-dilutive.
Diluted earnings per share is computed under the two-class method by dividing diluted net income (loss) attributable to common shareholders, after reallocation adjustment for participating securities by the weighted average number of common shares outstanding, plus, for periods with net income attributable to common stockholders, the potential dilutive effects of share-based awards. In addition, we calculate the potential dilutive effect of any outstanding dilutive security under both the two-class method and the “if-converted” method, and we report the more dilutive of the methods as our diluted earnings per share. We also apply the treasury stock method with respect to certain share-based awards in the calculation of diluted earnings per share, if dilutive.
On October 30, 2022, we repurchased 3,617 Series A preferred shares from the holders for approximately $30.6 million. The repurchase premium of $5.2 million was treated as a reduction to the numerator of net income (loss) attributable to Civeo common shareholders utilized in the calculation of earnings per share for the year ended December 31, 2022.
The calculation of earnings per share attributable to Civeo common shareholders is presented below for the years ended December 31, 2024, 2023 and 2022 (in thousands, except per share amounts):
| 2024 | 2023 | 2022 | |||||||||||||||
| Numerator: | |||||||||||||||||
| Net income (loss) attributable to Civeo common shareholders, before allocation of earnings to participating securities | $ | (17,067) | $ | 30,157 | $ | 2,226 | |||||||||||
| Less: premium paid for repurchase of preferred shares | — | — | (5,189) | ||||||||||||||
| Less: income allocated to participating securities | — | — | — | ||||||||||||||
| Net income (loss) attributable to Civeo Corporation common shareholders, after allocation of earnings to participating securities | $ | (17,067) | $ | 30,157 | $ | (2,963) | |||||||||||
| Add: undistributed income attributable to participating securities | — | — | — | ||||||||||||||
| Less: undistributed income reallocated to participating securities | — | — | — | ||||||||||||||
| Diluted net income (loss) attributable to Civeo Corporation common shareholders, after reallocation adjustment for participating securities | $ | (17,067) | $ | 30,157 | $ | (2,963) | |||||||||||
| Denominator: | |||||||||||||||||
| Weighted average shares outstanding - basic | 14,287 | 14,906 | 14,002 | ||||||||||||||
| Dilutive shares - share-based awards | — | 107 | — | ||||||||||||||
| Weighted average shares outstanding - diluted | 14,287 | 15,013 | 14,002 | ||||||||||||||
Basic net income (loss) per share attributable to Civeo Corporation common shareholders (1) | $ | (1.19) | $ | 2.02 | $ | (0.21) | |||||||||||
Diluted net income (loss) per share attributable to Civeo Corporation common shareholders (1) | $ | (1.19) | $ | 2.01 | $ | (0.21) | |||||||||||
(1)Computations may reflect rounding adjustments.
The following common share equivalents have been excluded from the calculation of weighted-average common shares outstanding because the effect is anti-dilutive for the years ended December 31, 2024, 2023 and 2022 (in millions of shares):
| 2024 | 2023 | 2022 | |||||||||||||||
Share-based awards (1) | 0.1 | — | 0.2 | ||||||||||||||
| Preferred shares | — | — | 2,240 | ||||||||||||||
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.