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

6 Months Ended

Jun. 30, 2019

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 six months ended June 30, 2019 and 2018 (dollar and share amounts in thousands, except for per share information):



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Net income attributable to common shareholders	$	2,689	$	67	$	4,446	$	565

Basic weighted average shares outstanding	19,291		19,105		19,280		19,058

Basic earnings per share attributable to common shareholders	$	0.14	$	—	$	0.23	$	0.03

Diluted shares outstanding:
Basic weighted-average shares outstanding	19,291		19,105		19,280		19,058
Stock-based awards	311		297		316		350
Diluted weighted-average shares outstanding	19,602		19,402		19,596		19,408

Diluted earnings per share attributable to common shareholders	$	0.14	$	—	$	0.23	$	0.03

Dilutive shares excluded from diluted-per-share amounts:
Stock options	445		330		445		330

Anti-dilutive shares excluded from diluted-per-share amounts:
Stock options	838		1,160		862		1,160

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 periods presented.