SHENANDOAH TELECOMMUNICATIONS CO/VA/SHEN

SHENANDOAH TELECOMMUNICATIONS CO/VA/ Earnings Per Share Disclosure

10-KFiled Feb 28, 20192 min read
Earnings (Loss) Per Share ("EPS")

Basic EPS was computed by dividing net income or loss by the weighted average number of shares of common stock outstanding during the period.  Diluted EPS was computed under the treasury stock method, assuming the conversion as of the beginning of the period, for all dilutive stock options. Diluted EPS was computed by dividing net income (loss) by the sum of the weighted average number of shares of common stock outstanding and potentially dilutive securities outstanding during the period under the treasury stock method. Potentially dilutive securities include stock options and restricted stock units and shares that the Company is contractually obligated to issue in the future.

The following table indicates the computation of basic and diluted earnings per share:
 
Years Ended December 31,
(in thousands, except per share amounts)
2018
 
2017
 
2016
Calculation of net income (loss) per share:
 
 
 
 
 
Net income (loss)
$
46,595

 
$
66,390

 
$
(895
)
Basic weighted average shares outstanding
49,542

 
49,150

 
48,807

Basic net income (loss) per share
$
0.94

 
$
1.35

 
$
(0.02
)
 
 
 
 
 
 
Effect of stock options outstanding:
 
 
 
 
 
Basic weighted average shares outstanding
49,542

 
49,150

 
48,807

Effect from dilutive shares and options outstanding
521

 
876

 
—

Diluted weighted average shares outstanding
50,063

 
50,026

 
48,807

Diluted net income (loss) per share
$
0.93

 
$
1.33

 
$
(0.02
)


Due to the net loss for the year ended December 31, 2016, no adjustment was made to basic shares for potentially dilutive securities, as such an adjustment would have been anti-dilutive.

The computation of diluted EPS does not include certain unvested awards, on a weighted average basis, because their inclusion would have an anti-dilutive effect on EPS. The awards excluded because of their anti-dilutive effect are as follows:
 
Years Ended December 31,
(in thousands)
2018
 
2017
 
2016
Awards excluded from the computation of diluted net income (loss) per share because their inclusion would have been anti-dilutive
33

 
21

 
800

Historical Timeline

Fiscal YearFiled
2018Feb 28, 2019Showing above
2017Mar 15, 2018

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.

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