LGL GROUP INC Earnings Per Share Disclosure
The following table presents a reconciliation of Net income (loss) and shares used in calculating basic and diluted net income (loss) per common share for the periods indicated:
| Year Ended December 31, | ||||||||
| (in thousands, except for share data) | 2024 | 2023 | ||||||
| Numerator for EPS: | ||||||||
| Income from continuing operations | $ | 522 | $ | 345 | ||||
| Less: Net income from continuing operations attributable to non-controlling interests | 90 | 48 | ||||||
| Income attributable to LGL Group common stockholders from continuing operations | 432 | 297 | ||||||
| (Loss) income from discontinued operations, net of tax | — | (28 | ) | |||||
| Net income attributable to LGL Group common stockholders | $ | 432 | $ | 269 | ||||
| Denominator for EPS: | ||||||||
| Weighted average common shares outstanding - basic | 5,352,937 | 5,352,937 | ||||||
| Dilutive effects (a): | ||||||||
| Warrants | 192,310 | — | ||||||
| Restricted stock | 8,576 | — | ||||||
| Weighted average common shares outstanding - diluted | 5,553,823 | 5,352,937 | ||||||
| Income (loss) per common share attributable to LGL Group common stockholders: | ||||||||
| Basic: | ||||||||
| Income from continuing operations | $ | 0.08 | $ | 0.06 | ||||
| (Loss) income from discontinued operations | — | (0.01 | ) | |||||
| Net income attributable to LGL Group common stockholders | $ | 0.08 | $ | 0.05 | ||||
| Diluted: | ||||||||
| Income from continuing operations | $ | 0.08 | $ | 0.06 | ||||
| (Loss) income from discontinued operations | — | (0.01 | ) | |||||
| Net income attributable to LGL Group common stockholders | $ | 0.08 | $ | 0.05 | ||||
| (a) | For the year ended December 31, 2023, weighted average shares used for calculating earnings per share excludes warrants to purchase 1,051,664 shares of common stock as well as 20,117 shares from restricted stock awards as the inclusion of these instruments would be antidilutive to the earnings per share calculation. For more information on the warrants and restricted stock, refer to Note 10 - Stockholders' Equity and Note 9 - Stock-Based Compensation, respectively, to these Consolidated Financial Statements. |
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.