Adcare Health Systems Inc Just Filed Its Annual Report: EARNINGS PER SHAREBa...

EARNINGS PER SHARE
Basic earnings per share is computed by dividing net income or loss by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is similar to basic earnings per share except net income or loss is adjusted by the impact of the assumed issuance of convertible shares and the weighted-average number of common shares outstanding and includes potentially dilutive securities, such as options, warrants, non-vested shares, and additional shares issuable under convertible notes outstanding during the period when such potentially dilutive securities are not anti-dilutive. Potentially dilutive securities from option, warrants and unvested restricted shares are calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of all options and warrants with exercise prices exceeding the average market value are used to repurchase common stock at market value. The incremental shares remaining after the proceeds are exhausted represent the potentially dilutive effect of the securities. Potentially dilutive securities from convertible promissory notes are calculated based on the assumed issuance at the beginning of the period, as well as any adjustment to income that would result from their assumed issuance. For 2013 and 2012, potentially dilutive securities of 11.3 million and 12.3 million, respectively, were excluded from the diluted loss per share calculation because including them would have been anti-dilutive in both periods.
For the years ended December 31, 2013 and 2012, no potentially dilutive securities were included in the diluted earnings per share calculation because to do so would be anti-dilutive. The following table provides a reconciliation of net income (loss) for continuing and discontinued operations and the number of common shares used in the computation of both basic and diluted earnings per share:
 
 
Year Ended December 31,
 
 
2013
 
2012
(Amounts in 000's, except per share data)
 
Loss
 
Shares
 
Per
Share
 
(Loss) Income
 
Shares
 
Per
Share
Continuing Operations:
 
 
 
 
 
 
 
 
 
 
 
 
Loss from continuing operations
 
$
(11,115
)
 
 
 
 
 
$
(13,386
)
 
 
 
 
Net loss attributable to noncontrolling interests
 
796

 
 
 
 
 
656

 
 
 
 
Basic loss from continuing operations          
 
$
(10,319
)
 
15,044

 
$
(0.69
)
 
$
(12,730
)
 
14,033

 
$
(0.91
)
Preferred stock dividend
 
(1,564
)
 
15,044

 
$
(0.10
)
 
(156
)
 
14,033

 
(0.01
)
Effect of dilutive securities: Stock options, warrants outstanding and convertible debt (1)
 

 

 

 

 

 

Diluted loss from continuing operations
 
$
(11,883
)
 
15,044

 
$
(0.79
)
 
$
(12,886
)
 
14,033

 
$
(0.92
)
Discontinued Operations:
 
 
 
 
 
 
 
 
 
 
 
 
Basic (loss) income from discontinued operations
 
$
(2,248
)
 
15,044

 
$
(0.15
)
 
$
5,846

 
14,033

 
$
0.42

Diluted (loss) income from discontinued operations
 
$
(2,248
)
 
15,044

 
$
(0.15
)
 
$
5,846

 
14,033

 
$
0.42

Net Loss Attributable to AdCare:
 
 
 
 
 
 
 
 
 
 
 
 
Basic loss
 
$
(14,131
)
 
15,044

 
$
(0.94
)
 
$
(7,040
)
 
14,033

 
$
(0.50
)
Diluted loss
 
$
(14,131
)
 
15,044

 
$
(0.94
)
 
$
(7,040
)
 
14,033

 
$
(0.50
)
_______________________________________________________________________________

(1)
Securities outstanding that were excluded from the computation, prior to the use of the treasury stock method, because they would have been anti-dilutive are as follows:
 
 
December 31,
(Amounts in 000’s)
 
2013
 
2012
Outstanding Stock Options
 
1,804

 
1,351

Outstanding Common Stock Warrants - employee
 
1,876

 
1,806

Outstanding Common Stock Warrants - nonemployee
 
1,989

 
1,961

Convertible Debt shares issuable(a)
 
5,611

 
7,142

Total anti-dilutive securities
 
11,280

 
12,260

(a) 
The number of shares issuable upon conversion of convertible promissory notes reflected in the tables above is 120% of the aggregate principal amount of the convertible promissory notes divided by the current conversion price, which is the number of shares required to be reserved for issuance by the Company under the applicable registration rights agreement.

The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here.

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Other recent filings from the company include the following:

Current report, items 1.01, 2.03, and 9.01 - July 29, 2014

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