FutureFuel (FF) 10-Q 2016 Q1 Quarterly report

Exhibit11

StatementofComputationofPerShareEarnings

We compute earnings per share using the two-class method in accordance with Accounting Standards Codification Topic No. 260, “Earnings Per Share.” The two-class method is an allocation of earnings between the holders of common stock and a company’s participating security holders. Our outstanding non-vested shares of restricted stock contain non- forfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. We had no other participating securities at March 31, 2016 or 2015.

Contingently issuable shares associated with outstanding service-based restricted stock units were not included in the earnings per share calculations for the three-month period ended March 31, 2016 as the vesting conditions had not been satisfied.

The composition of basic and diluted earnings per share were as follows:

(Dollars in thousands, except per share amounts)

	For the three months ended March 31:
	2016			2015
Numerator:
Net income	$	10,569		$	8,131
Less: distributed earnings allocated to non-vested stock		(15	)		(21	)
Less: undistributed earnings allocated to non-vested restricted stock		(44	)		(44	)
Numerator for basic earnings per share	$	10,510		$	8,066
Effect of dilutive securities:
Add: undistributed earnings allocated to non-vested restricted stock		44			44
Less: undistributed earnings reallocated to non-vested restricted stock		(44	)		(44	)
Numerator for diluted earnings per share	$	10,510		$	8,066
Denominator:
Weighted average shares outstanding – basic		43,475,630			43,372,388
Effect of dilutive securities:
Stock options and other awards		10,918			9,895
Weighted average shares outstanding – diluted		43,486,548			43,382,283
Basic earnings per share	$	0.24		$	0.19
Diluted earnings per share	$	0.24		$	0.19