KNIGHT TRANSPORTATION INC

CIK:0000929452|SEC Filings

Note 3 - Earnings Per Share

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Earnings Per Share [Text Block]

Note

Earnings Per Share

A reconciliation of the basic and diluted earnings per share computations for the

three

months and

six

months ended

June 30, 2017

and

2016,

respectively, is as follows (dollars in thousands except per share data):

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Weighted-average common shares outstanding – basic		80,520		80,105		80,416		80,407
Dilutive effect of stock options and unvested restricted stock units (1)		829		878		860		784
Weighted-average common shares outstanding – diluted		81,349		80,983		81,276		81,191

Net income attributable to Knight Transportation (1)	$	17,970	$	24,918	$	32,847	$	47,935

Basic earnings per share	$	0.22	$	0.31	$	0.41	$	0.60
Diluted earnings per share	$	0.22	$	0.31	$	0.40	$	0.59

(

)

We early adopted ASU

2016

09,

Improvements to Employee Share-Based Payment Accounting during the

fourth

quarter of

2016.

The adoption of this standard resulted in the recognition of

$1.8

million of excess tax benefits to the income tax provision for the year ended

December

31,

2016.

Net income and shares outstanding data for the

three

months and

six

months ended

June 30, 2016

are presented as if the ASU was adopted at the beginning of

2016.

Certain shares of options, restricted stock units, and PRSUs (collectively, “equity awards”) were excluded from the computation of diluted earnings per share because the equity awards’ exercise prices were greater than the average market price of the common shares and the sum total of assumed proceeds resulted in fewer shares repurchased than the weighted equity awards outstanding hypothetically exercised per the treasury method.

The number of anti-dilutive shares are:

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Number of anti-dilutive shares		379,127		1,274,322		312,128		1,185,126