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 (Loss) Per Share

Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2017

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2017				2016		2017		2016
Net income (loss) attributable to common shareholders	$	(187	)		$	2,568	$	1,973	$	4,637

Basic weighted average shares outstanding	18,876				18,723		18,861		18,708

Basic earnings (loss) per share attributable to common shareholders	$	(0.01	)		$	0.14	$	0.10	$	0.25

Diluted shares outstanding
Basic weighted-average shares outstanding	18,876				18,723		18,861		18,708
Stock-based awards	—				217		390		238
Diluted weighted-average shares outstanding	18,876				18,940		19,251		18,946

Diluted earnings (loss) per share attributable to common shareholders	$	(0.01	)		$	0.14	$	0.10	$	0.24

Dilutive shares excluded from diluted-per-share amounts:
Stock options	—			⁽¹⁾	86		371		86

Anti-dilutive shares excluded from diluted-per-share amounts:
Stock options	2,444			⁽¹⁾	1,445		1,363		1,445

(1) As a result of the net loss for the three months ended June 30, 2017, no potentially dilutive securities are included in the calculation of diluted earnings (loss) per share because such effect would be anti-dilutive. Potentially dilutive securities include 1,540 outstanding options to purchase shares of common stock and 904 restricted stock units.

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 (i) 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 (ii) shares that would be anti-dilutive to the computation of diluted net income per share for each of the years presented.