SEC Document

RPM INTERNATIONAL INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

 

NOTE 12 — EARNINGS (LOSS) PER SHARE

The following table sets forth the reconciliation of the numerator and denominator of basic and diluted earnings per share, as calculated using the treasury stock method for the three months ended November 30, 2016 and the two-class method for the six months ended November 30, 2016.  For the three and six months ended November 30, 2017, basic and diluted earnings per share were calculated using the two-class method.

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

November 30,

 

 

November 30,

 

 

November 30,

 

 

November 30,

 

(In thousands, except per share amounts)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Numerator for earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to RPM International Inc.

   stockholders

 

$

95,463

 

 

$

(70,926

)

 

$

211,879

 

 

$

41,843

 

Less:  Allocation of earnings and dividends to

   participating securities

 

 

(1,313

)

 

 

 

 

 

 

(2,828

)

 

 

(621

)

Net income (loss) available to common shareholders -

   basic

 

 

94,150

 

 

 

(70,926

)

 

 

209,051

 

 

 

41,222

 

Add:  Undistributed earnings reallocated to unvested

   shareholders

 

 

3

 

 

 

 

 

 

 

7

 

 

 

 

 

Add:  Income effect of contingently issuable shares

 

 

1,379

 

 

 

 

 

 

 

2,756

 

 

 

 

 

Net income (loss) available to common shareholders -

   diluted

 

$

95,532

 

 

$

(70,926

)

 

$

211,814

 

 

$

41,222

 

Denominator for basic and diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares

 

 

131,163

 

 

 

130,695

 

 

 

131,204

 

 

 

130,647

 

Average diluted options

 

 

514

 

 

 

 

 

 

 

544

 

 

 

 

 

Additional shares issuable assuming conversion of

   convertible securities (1)

 

 

3,915

 

 

 

 

 

 

 

3,915

 

 

 

 

 

Total shares for diluted earnings per share (2)

 

 

135,592

 

 

 

130,695

 

 

 

135,663

 

 

 

130,647

 

Earnings (Loss) Per Share of Common Stock Attributable to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RPM International Inc. Stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings (Loss) Per Share of Common Stock

 

$

0.72

 

 

$

(0.54

)

 

$

1.59

 

 

$

0.32

 

Diluted Earnings (Loss) Per Share of Common Stock

 

$

0.70

 

 

$

(0.54

)

 

$

1.56

 

 

$

0.32

 

 

(1)

Represents the number of shares that would be issued if our contingently convertible notes were converted.  We include these shares in the calculation of diluted EPS as the conversion of the notes may be settled, at our election, in cash, shares of our common stock, or a combination of cash and shares of our common stock.  

(2)

Restricted shares totaling 123,262 and 99,612 for the three and six months ended November 30, 2017, respectively, were excluded from the calculation of diluted earnings per share because the grant price of the restricted shares exceeded the average market price of the shares during the period and their effect, accordingly, would have been anti-dilutive. There were 243,000 shares of restricted stock identified as being anti-dilutive for the three months ended November 30, 2016; and none identified as being anti-dilutive for the six months ended November 30, 2016. In addition, stock appreciation rights (“SARs”) totaling 600,000 for the three and six months ended November 30, 2017, and 1,170,000 for the three and six months ended November 30, 2016, were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive.

 

 

 

17



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