Annual report pursuant to Section 13 and 15(d)

Net Income (Loss) per Common Share

v2.4.0.6
Net Income (Loss) per Common Share
 12 Months Ended
Mar. 31, 2013
Earnings Per Share [Abstract]  
Net Income (Loss) per Common Share
Net Income (Loss) per Common Share
Basic net income or loss per share is computed by dividing net income or loss by the weighted average number of common shares outstanding during each period. Diluted net income or loss per share is computed by dividing net income or loss by the weighted average number of common shares and common share equivalents outstanding (if dilutive) during each period. The number of common share equivalents, which includes options and both restricted and performance stock units, is computed using the treasury stock method.  With regard to the performance stock units, we assumed that the associated performance targets will be met at the target level of performance for purposes of calculating diluted net income per common share for fiscal 2013, the only period in which the performance stock units were outstanding.
The reconciliation of the denominators used to calculate basic EPS and diluted EPS for fiscal 2013, fiscal 2012, and for the periods from May 1, 2010 to March 31, 2011 and from April 1, 2010 to April 30, 2010, respectively, is as follows:
 
 
Year Ended March 31, 2013
 
Year Ended March 31, 2012
 
For the Period From May 1, 2010 Through March 31, 2011
 
For the Period From April 1, Through April 30, 2010
 
 
(Successor)
 
(Successor)
 
(Successor)
 
(Predecessor)
Basic net income (loss) per common share
 
 
 
 
 
 
 
 
Net income (loss)
 
$
26,974

 
$
12,030

 
$
(14,940
)
 
$
(267
)
Weighted-average common shares outstanding
 
30,796,675

 
29,083,478

 
24,900,332

 
52,253

Basic net income (loss) per common share
 
$
0.88

 
$
0.41

 
$
(0.60
)
 
$
(5.11
)
 
 
Year Ended March 31, 2013
 
Year Ended March 31, 2012
 
For the Period From May 1, 2010 Through March 31, 2011
 
For the Period From April 1, Through April 30, 2010
 
 
(Successor)
 
(Successor)
 
(Successor)
 
(Predecessor)
Diluted net income (loss) per common share
 
 

 
 

 
 
 
 
Net income (loss)
 
$
26,974

 
$
12,030

 
$
(14,940
)
 
$
(267
)
Weighted-average common shares outstanding
 
30,796,675

 
29,083,478

 
24,900,332

 
52,253

Common share equivalents:
 
 
 
 
 
 
 
 
Stock options issued
 
953,710

 
1,370,777

 
—

 
—

Restricted and performance stock units issued
 
46,445

 
—

 
—

 
—

Weighted average shares outstanding – dilutive
 
31,796,830

 
30,454,255

 
24,900,332

 
52,253

Diluted net income (loss) per common share (1)
 
$
0.85

 
$
0.40

 
$
(0.60
)
 
$
(5.11
)

(1)
As the Company was in a net loss position for the period from May 1, 2010 through March 31, 2011 and for the period from April 1, 2010 through April 30, 2010, there was no dilutive effect on net loss per common share as the Class P units issued by the predecessor and options issued by the successor are anti-dilutive. Therefore, both basic and diluted net loss per common share were $(0.60) for the period from May 1, 2010 through March 31, 2011 and $(5.11) for the period from April 1, 2010 through April 30, 2010.

In those periods in which the Company was in a net income position, all stock options outstanding were dilutive and no options had a strike price below the average market price of the stock during the year.

See Note 14. "Shareholders' Equity (Successor)", for additional information regarding the stock split on March 31, 2011. The Board of Directors of Thermon Group Holdings, Inc. (“Successor”) approved a 192.4586811-for-one split of Successor's issued and outstanding common stock. These consolidated financial statements and notes to consolidated financial statements have been restated to reflect the 192.458681-for-one split. Note that the capital structures of the predecessor and successor are substantially different and the reported per common share amounts are not comparable.