REX AMERICAN RESOURCES Corp Earnings Per Share Disclosure
7. NET INCOME PER SHARE
The Company reports net income per share in accordance with ASC 260, “Earnings per Share”. Basic net income per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the year. Diluted net income per share is computed by dividing net income available to common shareholders by the weighted average number of shares outstanding and dilutive common share equivalents during the year. Common share equivalents include the number of shares issuable upon the exercise of restricted stock awards, less the shares that could be purchased under the treasury stock method.
The following table reconciles the basic and diluted net income per share computations for fiscal year 2015 (amounts in thousands, except per-share amounts):
| 2015 | ||||||||||||
| Income | Shares | Per Share | ||||||||||
| Basic net income per share attributable to REX common shareholders | $ | 31,436 | 7,297 | $ | 4.31 | |||||||
| Effect of restricted stock | 10 | |||||||||||
| Diluted net income per share attributable to REX common shareholders | $ | 31,436 | 7,307 | $ | 4.30 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2018 | Mar 29, 2018 | Showing above |
| 2017 | Mar 27, 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.