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, 2024

19. Earnings per Share:

Basic earnings per share is calculated as income 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 RSAs 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 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 RSAs and RSUs with service vesting conditions, (2) PSUs 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,
		2024	2023
Weighted average shares outstanding – Basic		116,955,043	122,178,867
Dilutive effect of unvested common shares and RSUs with service conditions, PSUs considered probable of vesting and assumed stock option exercises and conversions		496,106	—
Weighted average shares outstanding – Diluted		117,451,149	122,178,867

Basic and diluted income per share are calculated as follows:


	Three months ended March 31,
		2024		2023
Numerator:
Net income (loss)		$	1,221	$	(1,471)

Denominator:
Weighted average shares outstanding – Basic		116,955,043		122,178,867
Weighted average shares outstanding – Diluted		117,451,149		122,178,867

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

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,
		2024	2023
RSAs with performance only targets not achieved		—	200,096
Stock options with performance only targets not achieved		—	208,968
Anti-dilutive RSUs and PSUs(1)		558,989	432,308
Anti-dilutive stock options(1)		367,100	695,777

(1)Does not include 1,044,098 of RSUs and PSUs, 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.

RSAs 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 18 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.