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, 2022

20. 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 common shares reflect (1) unvested restricted stock awards and restricted stock units with service vesting conditions, (2) performance stock units 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 March 31,
		2022	2021
Weighted average shares outstanding – Basic		137,684,773	136,006,082
Dilutive effect of unvested common shares and restricted stock units with service conditions, performance stock units considered probable of vesting and assumed stock option exercises and conversions		1,064,292	—
Weighted average shares outstanding – Diluted		138,749,065	136,006,082

Basic and diluted income (loss) per share are calculated as follows:


	Three months ended March 31,
		2022		2021
Numerator:
Income (loss) from continuing operations attributable to Ecovyst Inc.		$	7,875	$	(2,748)
Loss from discontinued operations attributable to Ecovyst Inc.		—		(89,887)
Net income (loss) attributable to Ecovyst Inc.		$	7,875	$	(92,635)

Denominator:
Weighted average shares outstanding – Basic		137,684,773		136,006,082
Weighted average shares outstanding – Diluted		138,749,065		136,006,082

Net loss per share:
Basic income (loss) per share - continuing operations		0.06		(0.02)
Diluted income (loss) per share - continuing operations		0.06		(0.02)
Basic loss per share - discontinued operations		—		(0.66)
Diluted loss per share - discontinued operations		—		(0.66)
Basic income (loss) per share		$	0.06	$	(0.68)
Diluted income (loss) per share		$	0.06	$	(0.68)

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 March 31,
		2022	2021
Restricted stock awards with performance only targets not yet achieved		613,903	883,380
Stock options with performance only targets not yet achieved		326,689	376,812
Anti-dilutive restricted stock awards, restricted stock units and performance stock units		—	—
Anti-dilutive stock options		807,301	—

Restricted stock awards 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. 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 combination of the options’ exercise price and remaining unamortized stock-based compensation expense was greater than the average market price of the common shares. Anti-dilutive awards are not included in the dilution calculation, as their inclusion would have the effect of increasing diluted income per share.