Primerica, Inc. Earnings Per Share Disclosure
(15) Earnings Per Share
The Company has outstanding common stock and equity awards that consist of RSUs and PSUs. All outstanding stock options were exercised during the year ended December 31, 2023. The RSUs maintain non-forfeitable dividend rights that result in dividend payment obligations on a one-to-one ratio with common shares for any future dividend declarations.
Unvested RSUs are deemed participating securities for purposes of calculating EPS as they maintain dividend rights. We calculate EPS using the two-class method. Under the two-class method, we allocate earnings to common shares and vested RSUs outstanding for the period. Earnings attributable to unvested participating securities, along with the corresponding share counts, are excluded from EPS as reflected in our consolidated statements of income.
In calculating basic EPS, we deduct from net income any dividends and undistributed earnings allocated to unvested RSUs and then divide the result by the weighted-average number of common shares and vested RSUs outstanding for the period.
We determine the potential dilutive effect of PSUs and stock options outstanding (“contingently-issuable shares”) on EPS using the treasury-stock method. Under this method, we determine the proceeds that would be received from the issuance of the contingently- issuable shares if the end of the reporting period were the end of the contingency period. The proceeds from the contingently-issuable shares include the remaining unrecognized compensation expense of the awards and the cash received for the exercise price on stock options. We then use the average market price of our common shares during the period the contingently-issuable shares were outstanding to determine how many shares we could repurchase with the proceeds raised from the issuance of the contingently-issuable shares. The net incremental share count issued represents the potential dilutive securities. We then reallocate earnings to common shares and vested RSUs by incorporating the increased fully-diluted share count to determine diluted EPS.
The calculation of basic and diluted EPS was as follows:
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Year ended December 31, |
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2025 |
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2024 |
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2023 |
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(In thousands, except per-share amounts) |
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Basic EPS: |
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Numerator (continuing operations): |
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Income from continuing operations |
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$ |
751,234 |
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$ |
720,129 |
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$ |
591,182 |
|
Income attributable to unvested participating securities |
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|
(2,446 |
) |
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|
(2,443 |
) |
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|
(2,535 |
) |
Income from continuing operations used in calculating basic EPS |
|
$ |
748,788 |
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|
$ |
717,686 |
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$ |
588,647 |
|
Numerator (discontinued operations): |
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Loss from discontinued operations |
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$ |
- |
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|
$ |
(249,611 |
) |
|
$ |
(14,581 |
) |
Loss attributable to unvested participating securities |
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|
- |
|
|
|
701 |
|
|
|
53 |
|
Loss from discontinued operations used in calculating |
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$ |
- |
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|
$ |
(248,910 |
) |
|
$ |
(14,528 |
) |
Denominator: |
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Weighted-average vested shares |
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32,632 |
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|
34,142 |
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|
35,954 |
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Basic EPS from continuing operations |
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$ |
22.95 |
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$ |
21.02 |
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$ |
16.37 |
|
Basic EPS from discontinued operations |
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- |
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(7.29 |
) |
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(0.40 |
) |
Basic EPS |
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$ |
22.95 |
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$ |
13.73 |
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$ |
15.97 |
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Diluted EPS: |
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Numerator (continuing operations): |
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Income from continuing operations |
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$ |
751,234 |
|
|
$ |
720,129 |
|
|
$ |
591,182 |
|
Income attributable to unvested participating securities |
|
|
(2,443 |
) |
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|
(2,440 |
) |
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|
(2,531 |
) |
Income from continuing operations used in calculating diluted EPS |
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$ |
748,791 |
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$ |
717,689 |
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$ |
588,651 |
|
Numerator (discontinued operations): |
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Loss from discontinued operations |
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$ |
- |
|
|
$ |
(249,611 |
) |
|
$ |
(14,581 |
) |
Loss attributable to unvested participating securities |
|
|
- |
|
|
|
701 |
|
|
|
52 |
|
Loss from discontinued operations used in calculating diluted EPS |
|
$ |
- |
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|
$ |
(248,910 |
) |
|
$ |
(14,529 |
) |
Denominator: |
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Weighted-average vested shares |
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32,632 |
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34,142 |
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|
35,954 |
|
Dilutive effect of incremental shares to be issued for |
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|
48 |
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|
57 |
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|
73 |
|
Weighted-average shares used in calculating diluted EPS |
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32,680 |
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|
34,199 |
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|
36,027 |
|
Diluted EPS from continuing operations |
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$ |
22.91 |
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$ |
20.99 |
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$ |
16.34 |
|
Diluted EPS from discontinued operations |
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- |
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|
(7.28 |
) |
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|
(0.40 |
) |
Diluted EPS |
|
$ |
22.91 |
|
|
$ |
13.71 |
|
|
$ |
15.94 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 25, 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.