6. Earnings per Common Share

 

Basic and diluted earnings per common share were computed as follows:

 

(In thousands, except per share amounts)

 

2025

   

2024

   

2023

 

Numerator:

                       

Net income

  $ 17,444     $ 26,922     $ 70,373  

Denominator:

                       

Basic earnings per common share - weighted-average shares

    81,512       81,406       81,272  

Effect of dilutive stock options

    7       66       141  

Diluted earnings per common share - weighted-average shares and assumed conversions

    81,519       81,472       81,413  

Basic earnings per common share

  $ 0.21     $ 0.33     $ 0.87  

Diluted earnings per common share

  $ 0.21     $ 0.33     $ 0.86  

 

Options totaling 682,298, 504,500 and 173,300 equivalent shares were outstanding but were not included in the calculation of diluted earnings per share for 2025, 2024 and 2023, respectively, because including the options in the denominator would be antidilutive, or decrease the number of weighted-average shares, due to their exercise prices exceeding the average market price of the common shares, or because inclusion of average unrecognized compensation expense in the calculation would cause the options to be antidilutive.

 

Unvested performance awards (see Note 10) totaling 149,859, 112,250 and 106,582 equivalent shares for 2025, 2024 and 2023, respectively, were considered outstanding but were not included in the calculation of diluted earnings per share because inclusion of average unrecognized compensation expense in the calculation would cause the performance awards to be antidilutive.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 28, 2025
2023Feb 28, 2024
2022Feb 28, 2023

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.