GLOBAL INDUSTRIAL CoGIC

GLOBAL INDUSTRIAL Co Earnings Per Share Disclosure

10-KFiled Feb 27, 20263 min read
NET INCOME PER COMMON SHARE
Net income per common share - basic was calculated based upon the weighted average number of common shares outstanding during the respective periods presented using the two-class method of computing earnings per share.  The two-
class method was used as the Company has outstanding restricted stock with rights to dividend participation for unvested shares. Undistributed net income is allocated between common shares outstanding and participating securities to the extent that each security may share in earnings as if all of the earnings for the period had been distributed. Undistributed net losses are not allocated to our participating securities as these participating securities do not have a contractual obligation to share in losses. Net income per common share - diluted was calculated based upon the weighted average number of common shares outstanding and included the equivalent shares for dilutive options outstanding during the respective periods, including unvested options.  The dilutive effect of outstanding options and restricted stock issued by the Company is reflected in net income per share - diluted using the treasury stock method.  Under the treasury stock method, options will only have a dilutive effect when the average market price of common stock during the period exceeds the exercise price of the options.

The following table presents the computation of basic and diluted net income per share under the two-class method for the years ended December 31, 2025, 2024 and 2023 (in millions, except for per share amounts):
Year Ended December 31,
202520242023
Net income from continuing operations$72.0 $60.7 $70.7 
Less: Distributed net income available to participating securities(0.4)(0.3)(0.2)
Less: Undistributed net income available to participating securities(0.4)(0.1)(0.2)
Numerator for basic net income per share:
Undistributed and distributed net income available to common shareholders$71.2 $60.3 $70.3 
Add: Undistributed net income allocated to participating securities0.4 0.1 0.2 
Less: Undistributed net income reallocated to participating securities0.0 (0.1)(0.2)
Numerator for diluted net income per share:
Undistributed and distributed net income available to common shareholders$71.6 $60.3 $70.3 
Denominator:
Weighted average shares outstanding for basic net income per share38.4 38.3 38.1
Effect of dilutive securities0.0 0.1 0.1
Weighted average shares outstanding for diluted net income per share38.4 38.4 38.2 
Net income per share from continuing operations:
Basic$1.86 $1.58 $1.85 
Diluted$1.85 $1.57 $1.84 
Net income from discontinued operations$0.1 $0.3 $0.0 
Numerator for basic and diluted net income per share:
Undistributed and distributed net income available to common shareholders$0.1 $0.3 $0.0 
Net income per share from discontinued operations:
Basic$0.00 $0.01 $0.00 
Diluted$0.00 $0.01 $0.00 
Net income per share:
Basic$1.86 $1.59 $1.85 
Diluted$1.85 $1.58 $1.84 
Potentially dilutive securities0.3 0.2 0.2 

Potentially dilutive securities attributable to outstanding stock options, restricted stock units, and performance share units excluded from the calculation of diluted earnings per share where the combined exercise price and average unamortized fair value are greater than the average market price of Global Industrial Company's common stock, and their inclusion would be anti-dilutive.

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.

Other Available Disclosures

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