Earnings Per Share |
Earnings Per Share Basic earnings per share ("EPS") is calculated by dividing earnings attributable to Masonite by the weighted average number of our common shares outstanding during the period. Diluted EPS is calculated by dividing earnings attributable to Masonite by the weighted average number of common shares plus the incremental number of shares issuable from non-vested and vested RSUs and SARs outstanding during the period. The weighted average number of shares outstanding utilized for the diluted EPS calculation contemplates the exercise of all currently outstanding SARs and the conversion of all RSUs. The dilutive effect of such equity awards is calculated based on the weighted average share price for each fiscal period using the treasury stock method. | | | | | | | | | | | | | | | | | | | | | | | | (In thousands, except share and per share information) | Three Months Ended | | Nine Months Ended | October 2, 2022 | | October 3, 2021 | | October 2, 2022 | | October 3, 2021 | Net income attributable to Masonite | $ | 57,037 | | | $ | 37,691 | | | $ | 183,134 | | | $ | 119,718 | | | | | | | | | | Shares used in computing basic earnings per share | 22,267,684 | | | 24,068,744 | | | 22,624,830 | | | 24,329,647 | | Effect of dilutive securities: | | | | | | | | Incremental shares issuable under share compensation plans | 224,190 | | | 357,649 | | | 248,197 | | | 389,971 | | Shares used in computing diluted earnings per share | 22,491,874 | | | 24,426,393 | | | 22,873,027 | | | 24,719,618 | | | | | | | | | | Basic earnings per common share attributable to Masonite | $ | 2.56 | | | $ | 1.57 | | | $ | 8.09 | | | $ | 4.92 | | Diluted earnings per common share attributable to Masonite | $ | 2.54 | | | $ | 1.54 | | | $ | 8.01 | | | $ | 4.84 | | | | | | | | | | Anti-dilutive instruments excluded from diluted earnings per common share | 212,197 | | | 31,530 | | | 223,660 | | | 31,530 | | | | | | | | | | | | | | | | | | | | | | | | | |
The Company's Board of Directors has approved five share repurchase authorizations, the most recent being an incremental $200.0 million share repurchase program approved on February 21, 2022. In addition, the Company announced that its Board of Directors authorized it to enter into an accelerated share repurchase ("ASR") transaction as part of the new share repurchase program. The Company entered into an ASR transaction during the first quarter of 2022 with a third-party financial institution for the repurchase of $100.0 million of its outstanding common shares. At inception, pursuant to the agreement, the Company paid $100.0 million to the financial institution using cash on hand and received an initial delivery of 848,087 common shares on the same day. The final delivery of 319,678 common shares occurred in the second quarter. The $100.0 million ASR transaction was therefore completed in the second quarter with a total delivery of 1,167,765 common shares at a volume-weighted average price (“VWAP”) per share minus an agreed upon discount totaling $85.63 per share. The cash paid was reflected as a reduction of equity at the initial delivery of shares and the number of shares outstanding were reduced at the dates of physical delivery.
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