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, 2018

19. Earnings per Share:

Basic earnings per share is calculated as income (loss) 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 restricted stock awards 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 (loss) available to common stockholders, divided by the weighted average number of common and potential common shares outstanding during the period, if dilutive. Potential shares reflect unvested restricted stock awards and restricted stock units with service conditions as well as options to purchase common stock, 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,
	2018	2017
Weighted average shares outstanding – Basic	133,154,144	103,947,888
Dilutive effect of unvested common shares and restricted stock units with service conditions and assumed stock option exercises and conversions	730,839	—
Weighted average shares outstanding – Diluted	133,884,983	103,947,888

Basic and diluted earnings per share are calculated as follows:



	Three months ended March 31,
	2018		2017
Numerator:
Net income (loss) attributable to PQ Group Holdings Inc.	$	214	$	(2,454	)

Denominator:
Weighted average shares outstanding – Basic	133,154,144		103,947,888
Weighted average shares outstanding – Diluted	133,884,983		103,947,888
Net income (loss) per share:
Basic income (loss) per share	$	0.00	$	(0.02	)
Diluted income (loss) per share	$	0.00	$	(0.02	)

The table below presents the details of the Company’s equity-based awards outstanding at the end of each respective period that were excluded from the calculation of diluted earnings per share:



	March 31,
	2018	2017
Restricted stock awards with performance only targets not yet achieved	1,751,022	1,773,693
Stock options with performance only targets not yet achieved	586,253	650,985
Anti-dilutive restricted stock awards and restricted stock units	—	477,720
Anti-dilutive stock options	621,747	1,539,536

Restricted stock awards and stock options with performance only vesting conditions are not included in the dilution calculation, as the performance targets have not been achieved as of the end of the respective periods. For the three months ended March 31, 2017, all of the Company’s restricted stock awards and stock options subject to service vesting conditions were considered anti-dilutive, as the Company was in a net loss position. Anti-dilutive awards are not included in the dilution calculation, as their inclusion would have the effect of increasing diluted income per share.