Note 8 - Earnings Per Share
 9 Months Ended
Sep. 30, 2016
Notes to Financial Statements  
Earnings Per Share [Text Block]
8
 
)
EARNINGS PER SHARE
 
We compute earnings per share using the two-class method in accordance with
 ASC Topic No. 260, “Earnings per Share.” The two-class method is an allocation of earnings between the holders of common stock and a company’s participating security holders. Our outstanding non-vested shares of restricted stock contain non-forfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. We had no other participating securities at September 30, 2016 or 2015.
 
Contingently issuable shares associated with outstanding service-based restricted stock units were not included in the earnings per share calculations for the three-month periods ended
September 30, 2016 or 2015 as the vesting conditions had not been satisfied.
 
Basic and diluted earnings per common share were computed as follows:
 
 
   
For the three months ended September 30:
    
For the nine months ended September 30:
  
   
2016
    
2015
    
2016
    
2015
  
Numerator:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Net income
   $ 12,868     $ 4,850     $ 37,661     $ 16,774  
Less: distributed earnings allocated to non-vested stock
     (8 )     (15 )     (32 )     (52 )
Less: undistributed earnings allocated to non-vested restricted stock
     (35 )     (12 )     (131 )     (57 )
Numerator for basic earnings per share
   $ 12,825     $ 4,823     $ 37,498     $ 16,665  
Effect of dilutive securities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Add: undistributed earnings allocated to non-vested restricted stock
     35       12       131       57  
Less: undistributed earnings reallocated to non-vested restricted stock
     (35 )     (12 )     (131 )     (61 )
Numerator for diluted earnings per share
   $ 12,825     $ 4,823     $ 37,498     $ 16,661  
Denominator:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Weighted average shares outstanding
– basic
     43,570,734       43,460,449       43,524,729       43,418,243  
Effect of dilutive securities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Stock options and other awards
     2,263       837       4,694       6,180  
Weighted average shares outstanding
– diluted
     43,572,997       43,461,286       43,529,423       43,424,423  
                                 
Basic earnings per share
   $ 0.29     $ 0.11     $ 0.86     $ 0.38  
Diluted earnings per share
   $ 0.29     $ 0.11     $ 0.86     $ 0.38  
 
Certain options to purchase FutureFuel
’s common stock were not included in the computation of diluted earnings per share for the three-months and nine-months ended September 30, 2016 because they were anti-dilutive in the period. The weighted average number of options excluded on this basis was 30,000 and 76
,667 for the three-months and nine-months ended September 30, 2016, respectively. The weighted average number of options excluded on this basis was 190,000 and 130,000 for the three and nine-months ended September 30, 2015, respectively
.