Annual report pursuant to Section 13 and 15(d)

Earnings per Share

v3.22.4
Earnings per Share
12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Earnings per Share
24. Earnings per Share:
Basic earnings per share is calculated as income (loss) available to common stockholders, divided by the weighted average number of common shares outstanding during the period. The weighted average number of common shares outstanding during the period for the computation of basic earnings per share excludes restricted stock awards that have legally been issued but are nonvested during the period, as the sale of these shares is prohibited pending satisfaction of certain vesting conditions by the award recipients in order to earn the rights to the shares (see Note 23 to these consolidated financial statements for further information regarding outstanding nonvested restricted stock awards).
Diluted earnings per share is calculated as income (loss) available to common stockholders, divided by the weighted average number of common and potential common shares outstanding during the period, if dilutive. Potential common shares reflect (1) unvested restricted stock awards and restricted stock units with service vesting conditions, (2) performance stock units with vesting conditions considered probable of achievement and (3) options to purchase common stock, all of which have been included in the diluted earnings per share calculation using the treasury stock method.
The reconciliation from basic to diluted weighted average shares outstanding is as follows:
Years ended
December 31,
2022 2021 2020
Weighted average shares outstanding – Basic 133,601,322  136,167,384  135,528,977 
Dilutive effect of unvested common shares and restricted stock units with service conditions, performance stock units considered probable of vesting and assumed stock option exercises and conversions 1,486,850 1,541,547 921,976
Weighted average shares outstanding – Diluted 135,088,172  137,708,931  136,450,953 
Basic and diluted income (loss) per share are calculated as follows:
Years ended
December 31,
2022 2021 2020
Numerator:
Income from continuing operations attributable to Ecovyst Inc. $ 69,795  $ 1,794  $ 54,280 
Income (loss) from discontinued operations attributable to Ecovyst Inc. 3,902  (141,743) (333,051)
Net income (loss) attributable to Ecovyst Inc. $ 73,697  $ (139,949) $ (278,771)
Denominator:
Weighted average shares outstanding – Basic 133,601,322  136,167,384  135,528,977 
Weighted average shares outstanding – Diluted 135,088,172  137,708,931  136,450,953 
Net income (loss) per share:
Basic income per share - continuing operations $ 0.52  $ 0.01  $ 0.40 
Diluted income per share - continuing operations $ 0.52  $ 0.01  $ 0.40 
Basic (loss) income per share - discontinued operations $ 0.03  $ (1.04) $ (2.46)
Diluted (loss) income per share - discontinued operations $ 0.03  $ (1.03) $ (2.44)
Basic income (loss) per share $ 0.55  $ (1.03) $ (2.06)
Diluted income (loss) per share $ 0.55  $ (1.02) $ (2.04)
The table below presents the details of the Company’s weighted average equity-based awards outstanding during each respective year that were excluded from the calculation of diluted earnings per share:
Years ended
December 31,
2022 2021 2020
Restricted stock awards with performance only targets not yet achieved 539,688  839,432  1,225,855 
Stock options with performance only targets not yet achieved 309,984  373,105  507,461 
Anti-dilutive restricted stock awards, restricted stock units and performance stock units 20,497  6,214  1,453,120 
Anti-dilutive stock options 776,594  244,473  846,049 
Restricted stock awards and stock options with performance only vesting conditions are not included in the dilution calculation, as the performance targets have not been achieved nor were probable of achievement as of the end of the respective periods. Certain stock options to purchase shares of common stock were excluded from the computation of diluted earnings per share for the respective periods, because the combination of the options’ exercise price and remaining unamortized stock-based compensation expense was greater than the average market price of the common shares. Anti-dilutive awards are not included in the dilution calculation, as their inclusion would have the effect of increasing diluted income per share.