STANDARD MOTOR PRODUCTS, INC.SMP

STANDARD MOTOR PRODUCTS, INC. Earnings Per Share Disclosure

10-KFiled Feb 26, 20262 min read
Earnings Per Share
We present two calculations of earnings per common share. “Basic” earnings per common share equals net earnings attributable to SMP divided by weighted average common shares outstanding during the period. “Diluted” earnings per common share equals net earnings attributable to SMP divided by the sum of weighted average common shares outstanding during the period plus potentially dilutive common shares. Potentially dilutive common shares that are anti-dilutive are excluded from net earnings per common share.
The following are reconciliations of the net earnings attributable to SMP and the shares used in calculating basic and dilutive net earnings per common share attributable to SMP (in thousands, except share and per share data):
Year Ended December 31,
202520242023
Net earnings (loss) attributable to SMP
Continuing operations79,033 53,628 63,144 
Discontinued operations(37,698)(26,128)(28,996)
Net earnings attributable to SMP$41,335 $27,500 $34,148 
Basic net earnings (loss) per common share attributable to SMP
Continuing operations$3.59 $2.46 $2.91 
Discontinued operations$(1.71)$(1.20)$(1.34)
Diluted net earnings (loss) per common share attributable to SMP
Continuing operations$3.52 $2.41 $2.85 
Discontinued operations$(1.68)$(1.17)$(1.31)
Weighted average number of common shares, basic21,986,30121,801,14121,716,177
Dilutive effect of restricted stock and performance-based stock497,290 435,919 445,164 
Weighted average number of common shares, diluted22,483,59122,237,06022,161,341
The shares listed below were not included in the computation of diluted net earnings per common share attributable to SMP because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method (in thousands):
202520242023
Restricted and performance shares293285280

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.

Other Available Disclosures

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