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

6 Months Ended

Jun. 30, 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 June 30,		Six months ended June 30,
	2024	2023	2024	2023
Weighted average shares outstanding – Basic	116,912,332	118,651,402	116,935,708	120,335,414
Dilutive effect of unvested common shares and RSUs with service conditions, PSUs considered probable of vesting and assumed stock option exercises and conversions	722,957	1,269,340	609,532	1,496,528
Weighted average shares outstanding – Diluted	117,635,289	119,920,742	117,545,240	121,831,942

Basic and diluted income per share are calculated as follows:


	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Numerator:
Net income	$	8,295	$	26,122	$	9,516	$	24,651

Denominator:
Weighted average shares outstanding – Basic	116,912,332		118,651,402		116,935,708		120,335,414
Weighted average shares outstanding – Diluted	117,635,289		119,920,742		117,545,240		121,831,942

Net income per share:
Basic income per share	$	0.07	$	0.22	$	0.08	$	0.20
Diluted income per share	$	0.07	$	0.22	$	0.08	$	0.20

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 June 30,		Six months ended June 30,
	2024	2023	2024	2023
RSAs with performance only targets not achieved	—	—	—	99,495
Stock options with performance only targets not achieved	—	—	—	103,907
Anti-dilutive RSUs and PSUs	431,837	685,656	481,281	630,668
Anti-dilutive stock options	367,100	520,757	367,100	607,783

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.