DOUGLAS DYNAMICS, INC Earnings Per Share Disclosure
14. Earnings Per Share
Basic earnings per share of common stock is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. As the Company has granted certain equity awards that both participate in dividend equivalents and do not participate in dividend equivalents, the Company has calculated earnings per share pursuant to the two‑class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities according to dividends declared and participation rights in undistributed earnings. All outstanding nonvested shares that contain non-forfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two-class method. Potential common shares in the diluted earnings per share computation are excluded to the extent that they would be anti-dilutive.
| 2025 | 2024 | 2023 | ||||||||||
| Basic earnings per common share | ||||||||||||
| Net income | $ | 46,897 | $ | 56,151 | $ | 23,723 | ||||||
| Less: Distributed and undistributed earnings allocated to nonvested shares | 1,049 | 1,083 | 528 | |||||||||
| Net income allocated to common shareholders | $ | 45,848 | $ | 55,068 | $ | 23,195 | ||||||
| Weighted average common shares outstanding | 23,087,800 | 23,072,993 | 22,962,591 | |||||||||
| $ | 1.99 | $ | 2.39 | $ | 1.01 | |||||||
| Diluted earnings per common share | ||||||||||||
| Net income allocated to common shareholders - basic | $ | 45,848 | $ | 55,068 | $ | 23,195 | ||||||
| Add: Undistributed earnings allocated to nonvested shareholders | 430 | 527 | - | |||||||||
| Net income allocated to common shareholders - diluted | $ | 46,278 | $ | 55,595 | $ | 23,195 | ||||||
| Weighted average common shares outstanding - basic | 23,087,800 | 23,072,993 | 22,962,591 | |||||||||
| Dilutive effect of participating securities | 533,106 | 436,983 | - | |||||||||
| Weighted average common shares outstanding - diluted | 23,620,906 | 23,509,976 | 22,962,591 | |||||||||
| $ | 1.96 | $ | 2.36 | $ | 0.98 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 13, 2017 | |
| 2015 | Mar 9, 2016 | |
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.