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, 2017

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, 2017 and 2016 (dollar and share amounts in thousands, except for per share information):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Net income attributable to common shareholders	$	2,443	$	4,155	$	4,416	$	8,792

Basic weighted average shares outstanding	18,897		18,751		18,873		18,723

Basic earnings loss per share attributable to common shareholders	$	0.13	$	0.22	$	0.23	$	0.47

Diluted shares outstanding
Basic weighted-average shares outstanding	18,897		18,751		18,873		18,723
Stock-based awards	389		504		392		272
Diluted weighted-average shares outstanding	19,286		19,255		19,265		18,995

Diluted earnings per share attributable to common shareholders	$	0.13	$	0.22	$	0.23	$	0.46

Dilutive shares excluded from diluted-per-share amounts:
Stock options	294		240		294		240

Anti-dilutive shares excluded from diluted-per-share amounts:
Stock options	1,309		663		1,309		1,440

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 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.