Quarterly report pursuant to Section 13 or 15(d)

EARNINGS PER SHARE

v3.20.2
EARNINGS PER SHARE
6 Months Ended
Jun. 30, 2020
EARNINGS PER SHARE  
EARNINGS PER SHARE

NOTE 7—EARNINGS PER SHARE

In March 2020, the Company successfully completed its fully backstopped $7.0 million Rights Offering, which expired March 2, 2020, pursuant to which the Company issued 5,384,615 shares of its common stock and received net proceeds of $6.6 million.

As of June 30, 2020, the Company’s 25,324,645 shares outstanding included 550,857 shares of contingently issued but unvested restricted stock. As of June 30, 2019, the Company’s 19,019,408 shares outstanding included 307,164 shares of contingently issued but unvested restricted stock. Restricted stock is excluded from the calculation of basic weighted average shares outstanding, but its impact, if dilutive, is included in the calculation of diluted weighted average shares outstanding.

Basic earnings per common share are calculated by dividing net income by the weighted average common shares outstanding during the period. Diluted earnings per common share are based on the weighted average common shares outstanding during the period, adjusted for the potential dilutive effect of common shares that would be issued upon the vesting and release of restricted stock awards and units and stock options, if any.

Basic and diluted earnings per common share from continuing operations were calculated as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands, except share data)

  

2020

 

2019

 

2020

  

2019

Income from continuing operations

 

$

2,509

 

$

1,286

 

$

1,580

 

$

1,681

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

24,773,788

 

 

18,712,244

 

 

22,560,723

 

 

18,613,097

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.10

 

$

0.07

 

$

0.07

 

$

0.09

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

24,773,788

 

 

18,712,244

 

 

22,560,723

 

 

18,613,097

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted effect:

 

 

 

 

 

 

 

 

 

 

 

 

Unvested portion of restricted stock units and awards

 

 

417,105

 

 

308,863

 

 

644,977

 

 

470,334

Weighted average diluted common shares outstanding

 

 

25,190,893

 

 

19,021,107

 

 

23,205,700

 

 

19,083,431

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

$

0.10

 

$

0.07

 

$

0.07

 

$

0.09

 

The weighted average number of shares outstanding used in the computation of basic and diluted earnings per common share does not include the effect of the following potential outstanding common stock. The effects of the potentially outstanding service-based restricted stock and restricted stock unit awards were not included in the calculation of diluted earnings per common share because the effect would have been anti-dilutive. The effects of the potentially outstanding performance- and market-based restricted stock unit awards were not included in the calculation of diluted earnings per common share because the performance and/or market conditions had not been satisfied as of June 30, 2020 and 2019.

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

2020

  

2019

Unvested service-based restricted stock and restricted stock unit awards

464,373

 

228,776

 

447,707

 

228,776

Unvested performance- and market-based restricted stock unit awards

2,369,890

 

878,147

 

2,369,890

 

878,147

Stock options

 —

 

122,000

 

 —

 

122,000