Global Self Storage, Inc. Earnings Per Share Disclosure
9. EARNINGS PER SHARE
Earnings per share is calculated under the two-class method under which all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities based on their respective rights to receive dividends. The Company grants restricted stock to certain employees under its stock-based compensation programs, which entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of the Company's common stock, $0.01 par value per share; these unvested awards meet the definition of participating securities.
The following table sets forth the computation of basic and diluted earnings per share:
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For the Year Ended December 31, |
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2024 |
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2023 |
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Net income |
|
$ |
2,123,743 |
|
|
$ |
2,938,769 |
|
Earnings and dividends allocated to participating securities |
|
|
(39,535 |
) |
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|
(24,425 |
) |
Net income attributable to common stockholders |
|
$ |
2,084,208 |
|
|
$ |
2,914,344 |
|
Weighted average common shares outstanding: |
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Average number of common shares outstanding - basic |
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|
11,094,915 |
|
|
|
11,045,699 |
|
Net effect of dilutive unvested restricted stock awards included for treasury stock method |
|
|
48,916 |
|
|
|
41,518 |
|
Average number of common shares outstanding - diluted |
|
|
11,143,831 |
|
|
|
11,087,217 |
|
Earnings per common share |
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|
|
|
|
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Basic |
|
$ |
0.19 |
|
|
$ |
0.26 |
|
Diluted |
|
$ |
0.19 |
|
|
$ |
0.26 |
|
Common stock dividends totaled $3,264,451 ($0.29 per share) and $3,231,608 ($0.29 per share) for the years ended December 31, 2024 and 2023, respectively.
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.