PARK AEROSPACE CORP Earnings Per Share Disclosure
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7. |
EARNINGS PER SHARE |
Basic earnings per share are computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share are computed by dividing net earnings by the sum of (a) the weighted average number of shares of common stock outstanding during the period and (b) the potential common stock equivalents outstanding during the period. Stock options are the only Common Stock equivalents, and the number of dilutive options is computed using the treasury stock method.
The following table sets forth the calculation of basic and diluted earnings per share:
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Fiscal Year |
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(Amounts in thousands, except per share amounts) |
2026 |
2025 |
2024 | |||||||||
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Net earnings |
$ | 11,272 | $ | 5,882 | $ | 7,473 | ||||||
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Weighted average common shares outstanding for basic EPS |
19,968 | 20,099 | 20,304 | |||||||||
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Net effect of dilutive options |
149 | 91 | 89 | |||||||||
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Weighted average shares outstanding for diluted EPS |
20,117 | 20,190 | 20,393 | |||||||||
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Basic earnings per share |
$ | 0.56 | $ | 0.29 | $ | 0.37 | ||||||
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Diluted earnings per share |
$ | 0.56 | $ | 0.29 | $ | 0.37 | ||||||
Potentially dilutive stock options, which were not included in the computation of diluted earnings per share because either the effect would have been antidilutive or the options’ exercise prices were greater than the average market price of the common stock, were 120,635, 103,713, and 94,263 for the 2026, 2025 and 2024 fiscal years, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 29, 2026 | Showing above |
| 2025 | May 30, 2025 | |
| 2024 | Jun 11, 2024 | |
| 2023 | May 12, 2023 | |
| 2022 | May 12, 2022 | |
| 2021 | May 14, 2021 | |
| 2020 | May 14, 2020 | |
| 2019 | May 20, 2019 | |
| 2018 | May 11, 2018 | |
| 2017 | May 12, 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.