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

9 Months Ended

Sep. 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 September 30,		Nine months ended September 30,
	2024	2023	2024	2023
Weighted average shares outstanding – Basic	116,490,634	116,446,085	116,786,759	119,042,161
Dilutive effect of unvested common shares and RSUs with service conditions, PSUs considered probable of vesting and assumed stock option exercises and conversions	696,420	928,262	638,495	1,374,971
Weighted average shares outstanding – Diluted	117,187,054	117,374,347	117,425,254	120,417,132

Basic and diluted income per share are calculated as follows:


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Numerator:
Net income	$	14,251	$	16,574	$	23,767	$	41,225

Denominator:
Weighted average shares outstanding – Basic	116,490,634		116,446,085		116,786,759		119,042,161
Weighted average shares outstanding – Diluted	117,187,054		117,374,347		117,425,254		120,417,132

Net income per share:
Basic income per share	$	0.12	$	0.14	$	0.20	$	0.35
Diluted income per share	$	0.12	$	0.14	$	0.20	$	0.34

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 September 30,		Nine months ended September 30,
	2024	2023	2024	2023
RSAs with performance only targets not achieved	—	—	—	65,966
Stock options with performance only targets not achieved	—	—	—	68,890
Anti-dilutive RSUs and PSUs	920,355	—	419,315	—
Anti-dilutive stock options	367,100	454,461	367,100	556,114

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.