13. EARNINGS PER SHARE 

 

Basic earnings per share ("EPS") is computed by dividing net income applicable to common shareholders by the weighted average number of common shares outstanding during each period. The diluted earnings per share computation includes common share equivalents, when dilutive.

 

A reconciliation of the shares used in the basic and diluted income per common share computation for the years ended December 31, as follows:

 

  

Twelve Months Ended

 
  

December 31,

 

(shares in thousands)

 

2025

  

2024

 
         

Basic - weighted average shares outstanding

  7,474   7,437 

Dilutive restricted share units

  44   23 

Dilutive stock options

  12   20 

Diluted - weighted average shares outstanding

  7,530   7,480 

Anti-dilutive securities

  122   120 

 

Historical Timeline

Fiscal YearFiled
2025Mar 11, 2026Showing above
2024Mar 17, 2025
2023Mar 15, 2024
2022Mar 10, 2023
2021Mar 15, 2022
2020Mar 16, 2021
2019Mar 6, 2020
2018Mar 13, 2019
2017Mar 12, 2018

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.