RUSH ENTERPRISES INC \TX\ Earnings Per Share Disclosure
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12. |
EARNINGS PER SHARE: |
Basic earnings per share (“EPS”) were computed by dividing income from continuing operations by the weighted average number of shares of common stock outstanding during the period. Diluted EPS differs from basic EPS due to the assumed conversions of potentially dilutive options and restricted stock awards that were outstanding during the period.
Each share of Class A common stock ranks equal to each share of Class B common stock with respect to receipt of any dividends or distributions declared on shares of common stock and the right to receive proceeds on liquidation or dissolution of the Company after payment of its indebtedness and liquidation preference payments to holders of any preferred shares. However, holders of Class A common stock have 1/20th of one vote per share on all matters requiring a shareholder vote, while holders of Class B common stock have one full vote per share.
The following is a reconciliation of the numerators and the denominators of the basic and diluted per share computations for income from continuing operations (in thousands, except per share amounts):
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2025 |
2024 |
2023 |
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Numerator- |
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Numerator for basic and diluted earnings per share − |
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Net income available to common shareholders |
$ | 263,778 | $ | 304,153 | $ | 347,055 | ||||||
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Denominator- |
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Denominator for basic earnings per share – weighted average shares outstanding |
78,380 | 79,058 | 81,089 | |||||||||
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Effect of dilutive securities− |
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Employee and director stock options and restricted share awards |
2,346 | 2,759 | 2,631 | |||||||||
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Denominator for diluted earnings per share − adjusted weighted average shares outstanding and assumed conversions |
80,726 | 81,818 | 83,720 | |||||||||
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Basic earnings per common share |
$ | 3.37 | $ | 3.85 | $ | 4.28 | ||||||
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Diluted earnings per common share and common share equivalents |
$ | 3.27 | $ | 3.72 | $ | 4.15 | ||||||
Options to purchase shares of common stock that were outstanding for the years ended December 31, 2025, 2024 and 2023 that were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive are as follows (in thousands):
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2025 |
2024 |
2023 |
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Anti-dilutive options – weighted average |
770 | 532 | 1,282 | |||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 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.