LEXICON PHARMACEUTICALS, INC. Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||||||||
| (In thousands, except per share amounts) | 2021 | 2020 | 2019 | ||||||||||||||
| Numerator: | |||||||||||||||||
| Net income (loss) | $ | (87,758) | $ | (58,574) | $ | 130,133 | |||||||||||
| Add interest expense on Convertible Notes | — | — | 5,067 | ||||||||||||||
| Adjusted net income (loss) | $ | (87,758) | $ | (58,574) | $ | 135,200 | |||||||||||
| Denominator: | |||||||||||||||||
| Shares used in computing net income (loss) per common share, basic | 145,652 | 110,841 | 106,218 | ||||||||||||||
| Add effect of potential dilutive securities | |||||||||||||||||
| Share based awards | — | — | 164 | ||||||||||||||
| Convertible Notes | — | — | 10,365 | ||||||||||||||
| Shares used in computing net income (loss) per common share, diluted | 145,652 | 110,841 | 116,747 | ||||||||||||||
| Net income (loss) per share - basic | $ | (0.60) | $ | (0.53) | $ | 1.23 | |||||||||||
| Net income (loss) per share - diluted | $ | (0.60) | $ | (0.53) | $ | 1.16 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2021 | Mar 10, 2022 | Showing above |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 12, 2020 | |
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.