FutureFuel (FF) 10-Q 2018 Q2 Quarterly report

Exhibit 11

Statement  of Computation of Per Share Earnings

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 June 30, 2018 or 2017.

Contingently issuable shares associated with outstanding service-based restricted stock units were not included in the earnings per share calculations for the three-month and six-month periods ended June 30, 2018 and 2017 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 June 30,						For the six months ended June 30,
	2018			2017			2018			2017
Numerator:
Net income	$	6,051		$	834		$	41,877		$	4,230
Less: distributed earnings allocated to non-vested stock		-			-			-			-
Less: undistributed earnings allocated to non-vested restricted stock		(3	)		(1	)		(24	)		(10	)
Numerator for basic earnings per share	$	6,048		$	833		$	41,853		$	4,220
Effect of dilutive securities:
Add: undistributed earnings allocated to non-vested restricted stock		3			1			24			10
Less: undistributed earnings reallocated to non-vested restricted stock		(3	)		(1	)		(24	)		(10	)
Numerator for diluted earnings per share	$	6,048		$	833		$	41,853		$	4,220
Denominator:
Weighted average shares outstanding – basic		43,716,726			43,665,171			43,716,698			43,641,038
Effect of dilutive securities:
Stock options and other awards		4,216			10,517			4,870			8,362
Weighted average shares outstanding – diluted		43,720,942			43,675,688			43,721,568			43,649,400
Basic earnings per share	$	0.14		$	0.02		$	0.96		$	0.10
Diluted earnings per share	$	0.14		$	0.02		$	0.96		$	0.10