Earnings Per Share:
The following is a reconciliation of the income and number of shares used in calculating the diluted earnings per share for Common Stock and Class A Common Stock (amounts in thousands except per share data):
| | | | | | | | | | | | | | | | | |
| Numerator: | 2025 | | 2024 | | 2023 |
| Common: | | | | | |
| Distributed earnings | $ | 19,346 | | | $ | 18,963 | | | $ | 32,612 | |
| (Excess distributions) undistributed earnings | (1,027) | | | (474) | | | 19,491 | |
| Basic | 18,319 | | | 18,489 | | | 52,103 | |
| Class A Common earnings | 1,411 | | | 1,467 | | | 4,216 | |
| Diluted | $ | 19,730 | | | $ | 19,956 | | | $ | 56,319 | |
| Class A Common: | | | | | |
| Distributed earnings | $ | 1,491 | | | $ | 1,505 | | | $ | 2,628 | |
| (Excess distributions) undistributed earnings | (80) | | | (38) | | | 1,588 | |
| $ | 1,411 | | | $ | 1,467 | | | $ | 4,216 | |
| | | | | | | | | | | | | | | | | |
| Denominator: | 2025 | | 2024 | | 2023 |
| Common: | | | | | |
| Weighted average shares outstanding - basic | 14,988 | | | 15,034 | | | 14,988 | |
| Assumed conversion of Class A Common Stock | 1,233 | | | 1,276 | | | 1,282 | |
| Dilutive awards and common stock equivalents | 371 | | | 397 | | | 504 | |
| Total weighted average diluted Common Stock | 16,592 | | | 16,707 | | | 16,774 | |
| Class A Common: | | | | | |
| Weighted average shares outstanding | 1,233 | | | 1,276 | | | 1,282 | |
| | | | | |
| Basic net earnings per share | | | | | |
| Common Stock | $ | 1.22 | | | $ | 1.23 | | | $ | 3.48 | |
| Class A Common Stock | $ | 1.14 | | | $ | 1.15 | | | $ | 3.29 | |
| Diluted net earnings per share | | | | | |
| Common Stock | $ | 1.19 | | | $ | 1.19 | | | $ | 3.36 | |
| Class A Common Stock | $ | 1.14 | | | $ | 1.15 | | | $ | 3.25 | |
At December 31, 2024, we did not include approximately 16,000 restricted share units in the computation of diluted earnings per common share because the expense of those shares were greater than the average market price and their inclusion would have been antidilutive.
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.