SYPRIS SOLUTIONS INC Earnings Per Share Disclosure
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(20) |
Loss Per Common Share |
The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Restricted stock granted by the Company is considered a participating security since it contains a non-forfeitable right to dividends.
Our potentially dilutive securities include potential common shares related to our stock options and restricted stock. Diluted earnings per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. Diluted earnings per share excludes the impact of common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period. All potential common shares were excluded from diluted earnings per share for the year ended December 31, 2025 and 2024 because the effect of inclusion would be anti-dilutive.
A reconciliation of the weighted average shares outstanding used in the calculation of basic and diluted (loss) income per common share is as follows (in thousands):
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Year ended December 31, |
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2025 |
2024 |
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Loss attributable to stockholders: |
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Net loss as reported |
$ | (6,338 | ) | $ | (1,680 | ) | ||
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Less distributed and undistributed earnings allocable to restricted award holders |
0 | 0 | ||||||
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Net loss allocable to common stockholders |
$ | (6,338 | ) | $ | (1,680 | ) | ||
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Loss per common share attributable to stockholders: |
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Basic |
$ | (0.28 | ) | $ | (0.08 | ) | ||
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Diluted |
$ | (0.28 | ) | $ | (0.08 | ) | ||
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Weighted average shares outstanding – basic |
22,270 | 22,043 | ||||||
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Weighted average additional shares assuming conversion of potential common shares |
0 | 0 | ||||||
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Weighted average shares outstanding – diluted |
22,270 | 22,043 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 26, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
| 2023 | Apr 1, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 17, 2022 | |
| 2020 | Mar 18, 2021 | |
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.