Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v3.3.0.814
Earnings Per Share
 9 Months Ended
Sep. 30, 2015
Earnings Per Share  
Earnings Per Share

J. EARNINGS PER SHARE

Basic net income per share is calculated by dividing net income by the weighted average shares outstanding during the period, without consideration for common stock equivalents.

Diluted net income per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury stock method.

For comparative purposes, the computation of basic and diluted earnings per common share for prior year periods presented was calculated using the shares distributed at Separation.

 

Basic and diluted earnings per share were computed as follows (in thousands except share and per share amounts):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30, 

 

September 30, 

 

 

 

2015

 

2014

 

2015

 

2014

 

Income from continuing operations

    

$
16,630

    

$
6,470

    

$
19,460

    

$
4,560

 

Loss from discontinued operations, net

 

 

 —

 

 
(90)

 

 
(230)

 

 
(930)

 

Net income - basic and diluted

 

$
16,630

 

$
6,380

 

$
19,230

 

$
3,630

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - basic

 

 
37,681,765

 

 
37,667,947

 

 
37,672,570

 

 
37,667,947

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive effect of common stock equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock awards

 

 
201,619

 

 

 —

 

 
67,963

 

 

 —

 

Stock options

 

 
24,400

 

 

 —

 

 
8,223

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - diluted

 

 
37,907,784

 

 
37,667,947

 

 
37,748,756

 

 
37,667,947

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$
0.44

 

$
0.17

 

$
0.52

 

$
0.12

 

Loss from discontinued operations, net

 

 

 —

 

 

 —

 

 
(0.01)

 

 
(0.02)

 

Net income

 

$
0.44

 

$
0.17

 

$
0.51

 

$
0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$
0.44

 

$
0.17

 

$
0.52

 

$
0.12

 

Loss from discontinued operations, net

 

 

 —

 

 

 —

 

 
(0.01)

 

 
(0.02)

 

Net income

 

$
0.44

 

$
0.17

 

$
0.51

 

$
0.10

 

 

Certain restricted stock awards and stock options were excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive.

 

On June 30, 2015, we distributed 37.7 million shares of our common stock to Masco shareholders in conjunction with the Separation.