Nature’s Sunshine Products, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Net Income Per Share

Net Income Per Share

9 Months Ended

Sep. 30, 2016

Basic net income per common share (“Basic EPS”), is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share.

Following is a reconciliation of the numerator and denominator of Basic EPS to the numerator and denominator of Diluted EPS for the three and nine months ended September 30, 2016 and 2015 (dollar and share amounts in thousands, except for per share information):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Net income attributable to common shareholders:
Net income from continued operations	$	4,155	$	1,962	$	8,792	$	8,878
Income from discontinued operations	$	—	$	804	$	—	$	2,116
Net income	$	4,155	$	2,766	$	8,792	$	10,994

Basic weighted average shares outstanding	18,751		18,688		18,723		18,678

Basic earnings per share attributable to common shareholders:
Net income from continued operations	$	0.22	$	0.09	$	0.47	$	0.44
Income from discontinued operations	$	—	$	0.04	$	—	$	0.11
Net income	$	0.22	$	0.15	$	0.47	$	0.59

Diluted shares outstanding
Basic weighted-average shares outstanding	18,751		18,688		18,723		18,678
Stock-based awards	504		429		272		515
Diluted weighted-average shares outstanding	19,255		19,117		18,995		19,193

Diluted earnings per share attributable to common shareholders:
Net income from continued operations	$	0.22	$	0.08	$	0.46	$	0.43
Income from discontinued operations	$	—	$	0.04	$	—	$	0.11
Net income	$	0.22	$	0.15	$	0.46	$	0.57

Potentially dilutive shares excluded from diluted-per-share amounts:
Stock options	240		348		240		348

Potentially anti-dilutive shares excluded from diluted-per-share amounts:
Stock options	663		752		1,440		613

Potentially dilutive shares excluded from diluted-per-share amounts include performance-based options to purchase shares of common stock for which certain earnings metrics have not been achieved. Potentially anti-dilutive shares excluded from diluted-per-share amounts include both non-qualified stock options and unearned performance-based options to purchase shares of common stock with exercise prices greater than the weighted-average share price during the period and shares that would be anti-dilutive to the computation of diluted net income per share for each of the years presented.