SPAR Group, Inc. Earnings Per Share Disclosure
13. Earnings Per Share
The following table sets forth the computations of basic and diluted earnings per share (in thousands, except per share data):
| Year Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Numerator: | ||||||||
| Net income (loss) attributable to SPAR Group, Inc. | $ | (3,150 | ) | $ | 3,902 | |||
| Denominator: | ||||||||
| Shares used in basic net income per share calculation | 23,555 | 23,333 | ||||||
| Effect of diluted securities: | ||||||||
| Stock options and unvested restricted shares | 174 | 147 | ||||||
| Convertible Series B Preferred Stock | – | 975 | ||||||
| Shares used in diluted net income per share calculations | 23,729 | 24,455 | ||||||
| Basic net income (loss) per common share: | $ | (0.13 | ) | $ | 0.17 | |||
| Diluted net income (loss) per common share: | $ | (0.13 | ) | $ | 0.16 | |||
The Company excluded 103,000 stock options and 71,000 RSUs from the computation of diluted net loss per share for the year ended December 31, 2024 because including them would have had an anti-dilutive effect.
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.