EVI Industries, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

6 Months Ended

Dec. 31, 2016

Note (4) - Earnings Per Share: The Company computes earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Shares of the Company’s non-vested restricted stock are considered participating securities because these awards contain a non-forfeitable right to dividends paid prior to forfeiture of the restricted stock, if any, irrespective of whether the awards ultimately vest. In November 2016, the Company issued 414,762 of restricted stock under the EnviroStar, Inc. 2015 Equity Incentive Plan(See Note 8). Such shares constitute a second class of stock for accounting purposes. Basic and diluted earnings per share for the six and three months ended December 31, 2016 and 2015 are computed as follows (in thousands except per share data):

	For the six months ended December 31,				For the three months ended December 31,
	2016 (Unaudited)		2015 (Unaudited)		2016 (Unaudited)		2015 (Unaudited)

Net income	$	1,680	$	536	$	1,329	$	379
Less: distributed and undistributed income allocated to non-vested restricted common stock		51		—		51		—
Net income allocated to EnviroStar, Inc. shareholders	$	1,629	$	536	$	1,278	$	379
Weighted average shares outstanding		8,538		7,034		10,043		7,034
Basic and fully diluted earnings per share	$	0.19	$	0.08	$	0.13	$	0.05

At December 31, 2016 and 2015, other than the restricted common stock discussed above, there were no potentially dilutive securities outstanding.