SUPERIOR GROUP OF COMPANIES, INC. Earnings Per Share Disclosure
The Company’s basic net income per share is computed based on the weighted average number of shares of common stock outstanding for the period. Diluted net income per share includes the effect of the Company’s outstanding stock options, stock appreciation rights, unvested shares of restricted stock and unvested performance shares, if the inclusion of these items is dilutive.
The following table presents a reconciliation of basic and diluted net income per share for the years ended December 31, 2024 and 2023 (net income is presented in thousands):
| Years Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Net income (in thousands) | $ | 12,004 | $ | 8,772 | ||||
| Weighted average shares outstanding - basic | 16,008,015 | 15,968,199 | ||||||
| Dilutive common stock equivalents | 496,369 | 191,109 | ||||||
| Weighted average shares outstanding - diluted | 16,504,384 | 16,159,308 | ||||||
| Net income per share: | ||||||||
| Basic | $ | 0.75 | $ | 0.55 | ||||
| Diluted | $ | 0.73 | $ | 0.54 | ||||
Awards to purchase 329,848 and 1,113,935 shares of common stock with weighted average exercise prices of $21.36 and $15.95, were outstanding during the years ended December 31, 2024 and 2023, respectively, but were not included in the computation of diluted net income per share because the awards’ exercise prices were greater than the average market price of the common shares.
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.