Ecovyst, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings per Share

Earnings per Share

3 Months Ended

Mar. 31, 2023

18. 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.

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:


	Three months ended March 31,
		2023	2022
Weighted average shares outstanding – Basic		122,178,867	137,684,773
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		—	1,064,292
Weighted average shares outstanding – Diluted		122,178,867	138,749,065

Basic and diluted (loss) income per share are calculated as follows:


	Three months ended March 31,
		2023		2022
Numerator:
Net (loss) income attributable to Ecovyst Inc.		$	(1,471)	$	7,875

Denominator:
Weighted average shares outstanding – Basic		122,178,867		137,684,773
Weighted average shares outstanding – Diluted		122,178,867		138,749,065

Net (loss) income per share:
Basic (loss) income per share		$	(0.01)	$	0.06
Diluted (loss) income per share		$	(0.01)	$	0.06

The table below presents the details of the Company’s weighted average equity-based awards outstanding during each respective period that were excluded from the calculation of diluted earnings per share:


	Three months ended March 31,
		2023	2022
Restricted stock awards with performance only targets not achieved		200,096	613,903
Stock options with performance only targets not achieved		208,968	326,689
Anti-dilutive restricted stock units and performance stock units(1)		432,308	—
Anti-dilutive stock options(1)		695,777	807,301

(1)Does not include 1,044,098 of restricted stock units and performance stock units, and 352,771 of stock options, for the three months ended March 31, 2023 due to the net loss attributable to Ecovyst Inc. for the period.

Restricted stock awards and stock options with performance only vesting conditions were 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. These awards and stock options were canceled on March 7, 2023 (see Note 17 to these condensed consolidated financial statements for additional information). 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 options’ exercise price was greater than the average market price of the common shares. These stock options and anti-dilutive awards are not included in the dilution calculation, as their inclusion would have the effect of increasing diluted income per share or reducing diluted loss per share.