Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v3.7.0.1
Earnings Per Share
9 Months Ended
Mar. 31, 2017
Earnings Per Share [Abstract]  
Earnings Per Share

Note (4) - Earnings Per Share: The Company computes earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Shares of the Company’s common stock subject to unvested restricted stock awards are considered participating securities because these awards contain a non-forfeitable right to dividends paid prior to forfeiture of the restricted stock, if any, irrespective of whether the awards ultimately vest. In November 2016 and January 2017, the Company issued awards of 414,762 shares of restricted stock and 35,212 shares of restricted stock, respectively, under the EnviroStar, Inc. 2015 Equity Incentive Plan (See Note 8). Such shares are deemed to constitute a second class of stock for accounting purposes. Basic and diluted earnings per share for the nine and three months ended March 31, 2017 and 2016 are computed as follows (in thousands except per share data):

 

    For the nine months ended
March 31,
  For the three months ended
March 31,
    2017
(Unaudited)
  2016
(Unaudited)
  2017
(Unaudited)
  2016
(Unaudited)
                 
Net income   $ 2,570     $ 1,310     $ 890     $ 774  
Less: distributed and undistributed
        income allocated to non-vested
        restricted common stock
    107             37        
Net income allocated to EnviroStar,
        Inc. shareholders
  $ 2,463     $ 1,310     $ 853     $ 774  
Weighted average shares outstanding  
        used in basic earnings per share
    9,140       7,034       10,369       7,034  
                                 
Dilutive common share equivalents     32             96        
Weighted average shares outstanding  
        used in dilutive earnings per share
    9,172       7,034       10,465       7,034  
Basic earnings per share   $ 0.27     $ 0.19     $ 0.08     $ 0.11  
Diluted earnings per share   $ 0.27     $ 0.19     $ 0.08     $ 0.11  

 

At March 31, 2017, other than the 449,974 shares of restricted common stock discussed above, there were no potentially dilutive securities outstanding. There were no potentially dilutive securities outstanding at March 31, 2016. For the nine and three months ended March 31, 2017 there were 417,972 and 353,969 of restricted common stock that was not included in the calculation of dilutive earnings per share because their impact is anti-dilutive.