Quarterly report pursuant to Section 13 or 15(d)

Note 16 - Earnings Per Share

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Note 16 - Earnings Per Share
9 Months Ended
Jul. 31, 2023
Notes to Financial Statements  
Earnings Per Share [Text Block]

Note 16. Earnings Per Share

 

The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share. For purposes of calculating earnings per share (“EPS”), a company that has participating security holders (for example, holders of unvested restricted stock that have non-forfeitable dividend rights and the Company’s Series A Preferred Stock) is required to utilize the two-class method for calculating EPS unless the treasury stock method results in lower EPS. The two-class method is an allocation of earnings/(loss) between the holders of common stock and a company’s participating security holders. Under the two-class method, earnings/(loss) for the reporting period is calculated by taking the net income (loss) for the period, less both the dividends declared in the period on participating securities (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) for the period. Our common shares outstanding are comprised of shareholder owned common stock and shares of unvested restricted stock held by participating security holders. Basic EPS is calculated by dividing income or loss attributable to common stockholders by the weighted average number of shares of common stock outstanding, excluding participating shares. Diluted earnings per share is based upon the weighted average number of shares as determined for basic earnings per share plus shares potentially issuable in conjunction with unvested restricted stock awards, incentive stock options, non-qualified stock options and shares of zero-dividend convertible perpetual preferred stock outstanding.

 

The table below shows our basic and diluted EPS calculations for the three and nine months ended July 31, 2023 and 2022:

 

   

Three Months Ended July 31,

   

Nine Months Ended July 31,

 

(in thousands, except share and per share amounts)

 

2023

   

2022

   

2023

   

2022

 

Net income (numerator):

                               

Net income attributable to Concrete Pumping Holdings, Inc.

  $ 10,336     $ 12,976     $ 22,399     $ 20,144  

Less: Accretion of liquidation preference on preferred stock

    (441 )     (441 )     (1,309 )     (1,309 )

Less: Undistributed earnings allocated to participating securities

    (323 )     (582 )     (751 )     (932 )

Net income attributable to common stockholders (numerator for basic earnings per share)

  $ 9,572     $ 11,953     $ 20,339     $ 17,903  

Add back: Undistributed earnings allocated to participating securities

    323       582       751       932  

Add back: Accretion of liquidation preference on preferred stock

    -       441       -       -  

Less: Undistributed earnings reallocated to participating securities

    (318 )     (573 )     (739 )     (917 )

Numerator for diluted earnings per share

  $ 9,577     $ 12,403     $ 20,351     $ 17,918  
                                 

Weighted average shares (denominator):

                               

Weighted average shares - basic

    53,198,637       54,012,404       53,377,157       53,859,874  

Weighted average shares - diluted

    54,104,738       57,286,563       54,262,940       54,772,441  
                                 

Basic earnings per share

  $ 0.18     $ 0.22     $ 0.38     $ 0.33  

Diluted earnings per share

  $ 0.18     $ 0.22     $ 0.38     $ 0.33  

 

For the three and nine months ended July 31, 2023 and 2022, 13.0 million warrants to purchase shares of common stock at an exercise price of $11.50 and for the three months ended July 31, 2023 and nine months ended July 31, 2023 and 2022, 2.5 million shares of Series A Preferred Stock were excluded from the computation of diluted EPS because their effect would have been anti-dilutive.