Alto Ingredients Inc (ALTO)

[Rule_62]

Hi Kel, the short answer is yes, however there's a difference between the separate calculation for each quarter and the year to date.

Below is a table I constructed using the 2013 and Q1 2014 numbers to help myself wrap my head around what happens going forward. The first table shows the weighted average shares outstanding and Fair Value Adjustments that are used in calculating the EPS. Note that each quarter is calculated on it's own, as well as the year to date. The second table shows the actual shares outstanding at the end of each quarter, as a matter of comparison to the weighted average used in the GAAP EPS calculation. The actual source I took it from in the corresponding filings is identified in italics.

BTW, you'll notice that there are times last year when the fair value adjustments actually helped the EPS. Q2 was an example of that ($1.437M / 10.853M shares improved the number for that quarter by 13 cents, otherwise the quarter would of shown a loss).

So yes, if the share price were to hang around down here all quarter, the effect on the Q2 EPS will be quite dramatic. The year to date will be less so because it's cumulative.





:D