Thermon Group Holdings, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Net Income/(Loss) per Common Share

Net Income/(Loss) per Common Share

6 Months Ended

Sep. 30, 2021

Basic net income/(loss) per common share is computed by dividing net income/(loss) by the weighted average number of common shares outstanding during each period. Diluted net income/(loss) per common share is computed by dividing net income/(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 assume that the associated performance targets will be met at the target level of performance for purposes of calculating diluted net income/(loss) per common share until such time that it is probable that the performance target will not be met.

The reconciliations of the denominators used to calculate basic and diluted net income/(loss) per common share for the three and six months ended September 30, 2021 and 2020, respectively, are as follows:


	Three Months Ended September 30, 2021		Three Months Ended September 30, 2020		Six Months Ended September 30, 2021		Six Months Ended September 30, 2020
Basic net income/(loss) per common share
Net income/(loss)	$	477	$	1,838	$	137	$	(4,247)
Weighted-average common shares outstanding	33,328,568		33,164,921		33,268,825		33,075,902
Basic net income/(loss) per common share	$	0.01	$	0.06	$	0.00	$	(0.13)


	Three Months Ended September 30, 2021		Three Months Ended September 30, 2020		Six Months Ended September 30, 2021		Six Months Ended September 30, 2020
Diluted net income/(loss) per common share
Net income/(loss)	$	477	$	1,838	$	137	$	(4,247)
Weighted-average common shares outstanding	33,328,568		33,164,921		33,268,825		33,075,902
Common share equivalents:
Stock options	—		3,376		1,667		—
Restricted and performance stock units	264,256		249,357		186,085		—
Weighted average shares outstanding – dilutive (1)	33,592,824		33,417,654		33,456,577		33,075,902
Diluted net income/(loss) per common share(2)	$	0.01	$	0.06	$	0.00	$	(0.13)

(1) For the three and six months ended September 30, 2021, 132,605 and 144,664 equity awards, respectively, were not included in the calculation of diluted net income/(loss) per common share, as they would have had an anti-dilutive effect. For the three and six months ended September 30, 2020, 256,444 and 283,764 respectively, were not included in the calculation of diluted net income/(loss) per common share, as they would have had an anti-dilutive effect.

(2) As the Company incurred a net loss for the six months ended September 30, 2020, there was no dilutive effect on net loss per common share as common share equivalents are antidilutive. Therefore, both basic and diluted net loss per common share were $(0.13) for the six months ended September 30, 2020.