Summit Hotel Properties, Inc.INN

Summit Hotel Properties, Inc. Earnings Per Share Disclosure

10-KFiled Feb 25, 20262 min read
EARNINGS PER SHARE
The following is a summary of the components used to calculate basic and diluted earnings per share (in thousands, except per share amounts): 
For the Years Ended December 31,
202520242023
Numerator:
Net (loss) income$(11,677)$38,891 $(28,116)
Adjusted for:
Distributions to and accretion of redeemable non-controlling interests(2,626)(2,626)(2,626)
Preferred dividends(15,875)(15,875)(15,875)
Loss related to non-controlling interests in consolidated joint ventures3,721 8,499 14,824 
Dividends paid on unvested time-based restricted stock(435)(317)(184)
Allocation of loss (income) to participating securities (¹)2,938 (3,739)3,987 
Numerator for (loss) income per common stockholder - basic(23,954)24,833 (27,990)
Adjusted for:
Interest rate effect on assumed conversion of convertible debt— 4,323 — 
Numerator for (loss) income per common stockholder - diluted$(23,954)$29,156 $(27,990)
Denominator:
Weighted average common shares outstanding - basic106,850 105,927 105,548 
Adjusted for:
Dilutive effect of equity-based compensation awards (2)
— 660 — 
Effect of assumed conversion of convertible debt— 25,778 — 
Weighted average common shares outstanding - diluted (3)
106,850 132,365 105,548 
Net (loss) income per share available to common stockholders:
Basic$(0.22)$0.23 $(0.27)
Diluted$(0.22)$0.22 $(0.27)

(1)    Balances include amounts allocated to Common Units, and for the year ended December 31, 2024, amounts allocated to unvested time-based restricted stock awards that have non-forfeitable rights to participate in dividends declared on Common Stock are accounted for under the two-class method as participating securities.

(2)    Balance reflects potentially dilutive securities issuable based on the estimated vesting of performance-based restricted stock using the treasury stock method and assuming that the reporting date is the vesting date. These shares were not included for the years ending December 31, 2025 and 2023 since their inclusion would have been anti-dilutive.
(3)    Common stock issuable upon the potential conversion of Common Units is not reflected in the computation of basic and diluted earnings per share as they are exchangeable for common shares on a one-for-one basis. Income is allocated to the Common Units on the same basis as Common Stock and is reflected as non-controlling interests in the accompanying Consolidated Financial Statements. As such, the assumed conversion of the Common Units would have no net effect on diluted earnings per share.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 24, 2025
2023Feb 29, 2024
2022Feb 27, 2023
2021Feb 23, 2022
2020Feb 26, 2021
2019Feb 25, 2020
2018Feb 26, 2019
2017Feb 21, 2018
2016Feb 23, 2017

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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