Ecovyst, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Earnings per Share

Earnings per Share

12 Months Ended

Dec. 31, 2023

22. 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 (see Note 21 to these consolidated financial statements for further information regarding outstanding nonvested restricted stock awards).

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:


	Years ended December 31,
	2023	2022	2021
Weighted average shares outstanding – Basic	118,367,214	133,601,322	136,167,384
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	1,120,495	1,486,850	1,541,547
Weighted average shares outstanding – Diluted	119,487,709	135,088,172	137,708,931

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


	Years ended December 31,
	2023		2022		2021
Numerator:
Income from continuing operations attributable to Ecovyst Inc.	$	71,154	$	69,795	$	1,794
Income (loss) from discontinued operations attributable to Ecovyst Inc.	—		3,902		(141,743)
Net income (loss) attributable to Ecovyst Inc.	$	71,154	$	73,697	$	(139,949)

Denominator:
Weighted average shares outstanding – Basic	118,367,214		133,601,322		136,167,384
Weighted average shares outstanding – Diluted	119,487,709		135,088,172		137,708,931

Net income (loss) per share:
Basic income per share - continuing operations	$	0.60	$	0.52	$	0.01
Diluted income per share - continuing operations	$	0.60	$	0.52	$	0.01
Basic income (loss) per share - discontinued operations	$	—	$	0.03	$	(1.04)
Diluted income (loss) per share - discontinued operations	$	—	$	0.03	$	(1.03)
Basic income (loss) per share	$	0.60	$	0.55	$	(1.03)
Diluted income (loss) per share	$	0.60	$	0.55	$	(1.02)

The table below presents the details of the Company’s weighted average equity-based awards outstanding during each respective year that were excluded from the calculation of diluted earnings per share:


	Years ended December 31,
	2023	2022	2021
Restricted stock awards with performance only targets not yet achieved	—	539,688	839,432
Stock options with performance only targets not yet achieved	51,526	309,984	373,105
Anti-dilutive restricted stock units and performance stock units	286,729	20,497	6,214
Anti-dilutive stock options	508,623	776,594	244,473

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. These awards and stock options were canceled on March 7, 2023 (see Note 21 of these consolidated financial statements for further 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.