VSE Corporation 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

Jun. 30, 2016

(4) Earnings Per Share

Basic earnings per share (“EPS”) has been computed by dividing net income by the weighted average number of shares of common stock outstanding during each period. Shares issued during the period are weighted for the portion of the period that they were outstanding. Our calculation of diluted earnings per common share includes the dilutive effects for an assumed vesting of restricted stock awards.

	Three months		Six months
	ended June 30,		ended June 30,
	2016	2015	2016	2015
Basic weighted average common shares outstanding	5,399,342	5,374,863	5,394,345	5,372,293
Effect of dilutive shares	13,903	15,958	13,908	13,255
Diluted weighted average common shares outstanding	5,413,245	5,390,821	5,408,253	5,385,548

Stock Split Effected In Form of Stock Dividend

In May 2016, our Board of Directors approved a two-for-one stock split effected in the form of a stock dividend (“Stock Split”). The Stock Split had a record date of July 20, 2016 and share distribution will occur on August 3, 2016. All references made to share or per share amounts in the accompanying unaudited consolidated financial statements and applicable disclosures are presented on a pre-split basis. As a result of the Stock Split, all historical per share data and number of shares outstanding presented in future financial statements will be retroactively adjusted. Upon completion of the Stock Split, the number of issued and outstanding shares will increase from approximately 5.4 million to 10.8 million.

Pro forma earnings per share is as follows, giving retroactive effect to the stock split:

	Three months				Six months
	ended June 30,				ended June 30,
	2016		2015		2016		2015
Earnings per share:
Basic – as reported	$	1.11	$	1.02	$	2.32	$	1.99
Basic – pro forma	$	0.55	$	0.51	$	1.16	$	1.00
Diluted – as reported	$	1.10	$	1.02	$	2.32	$	1.99
Diluted – pro forma	$	0.55	$	0.51	$	1.16	$	0.99
Weighted average common shares outstanding:
Basic – as reported		5,399,342		5,374,863		5,394,345		5,372,293
Basic – pro forma		10,798,684		10,749,726		10,788,691		10,744,586
Diluted – as reported		5,413,245		5,390,821		5,408,253		5,385,548
Diluted – pro forma		10,826,490		10,781,642		10,816,507		10,771,096