ESCALADE INC Earnings Per Share Disclosure
Note 7 — Earnings Per Share
The shares used in the computation of the Company’s basic and diluted earnings per common share are as follows:
|
In Thousands |
2025 |
2024 |
||||||
|
Weighted average common shares outstanding |
13,751 | 13,844 | ||||||
|
Dilutive effect of stock options and restricted stock units |
111 | 197 | ||||||
|
Weighted average common shares outstanding, assuming dilution |
13,862 | 14,041 | ||||||
|
Number of anti-dilutive stock options and unvested restricted stock units |
- | - | ||||||
Weighted average common shares outstanding, assuming dilution, includes the incremental shares that would be issued upon the assumed exercise of stock options outstanding.
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.