TopBuild Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

3 Months Ended

Mar. 31, 2016

10. INCOME (LOSS) PER SHARE

Basic net income per share is calculated by dividing net income by the weighted average shares outstanding during the period, without consideration for common stock equivalents.

Diluted net income per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury stock method.

For comparative purposes, the computation of basic and diluted income per common share for prior year periods presented was calculated using the shares distributed at Separation. On June 30, 2015, we distributed 37.7 million shares of our common stock to Masco shareholders in conjunction with the Separation.

Basic and diluted income (loss) per share were computed as follows (in thousands except share and per share amounts):


	Three Months Ended March 31,
	2016		2015
Income (loss) from continuing operations	$	11,116	$	(3,800)
Income from discontinued operations, net		—		1
Net income (loss) - basic and diluted	$	11,116	$	(3,799)

Weighted average number of common shares outstanding - basic		37,761,423		37,667,947

Dilutive effect of common stock equivalents:
RSAs with service-based conditions		113,683		—
RSAs with market-based conditions		—		—
RSAs with performance-based conditions		—		—
Stock options		24,004		—

Weighted average number of common shares outstanding - diluted		37,899,110		37,667,947

Basic income (loss) per common share:
Income (loss) from continuing operations	$	0.29	$	(0.10)
Income from discontinued operations, net		—		—
Net income (loss)	$	0.29	$	(0.10)

Diluted income (loss) per common share:
Income (loss) from continuing operations	$	0.29	$	(0.10)
Income from discontinued operations, net		—		—
Net income (loss)	$	0.29	$	(0.10)

The following table summarizes the shares excluded from the calculation of diluted income (loss) per share because their effect would have been anti-dilutive:


	Three Months Ended March 31,
	2016
Anti-dilutive common stock equivalents:
RSAs with service-based conditions		99,734
RSAs with market-based conditions		25,293
RSAs with performance-based conditions		—
Stock options		484,284
Total anti-dilutive common stock equivalents:		609,311