LPL » Topics » 15. Earnings (Loss) Per Share

This excerpt taken from the LPL 20-F filed Apr 16, 2008.

15. Earnings (Loss) Per Share

Earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the year.

Diluted earnings (loss) per share is computed in a manner consistent with that of basic earnings (loss) per share while giving effect to all potentially dilutive common shares that were outstanding during the period.

Earnings (Loss) per share for the years ended December 31, 2005, 2006 and 2007 are calculated as follows:

 

(in millions, except for per share amount)   2005   2006     2007

Basic earnings (loss) per share:

     

Numerator:

     

Net income (loss) allocated to common stock

  (Won) 541,649   (Won) (692,779 )   (Won) 1,344,379

Denominator:

     

Weighted-average number of common shares outstanding(1)

    339     358       358
                   

Basic earnings (loss) per share

  (Won) 1,596   (Won) (1,936 )   (Won) 3,755
                   

 

     2007

Diluted earnings per share:

  

Numerator:

  

Net income allocated to common stock for basic computation

   (Won) 1,344,379

Net income effect of dilutive securities

  

Add:

  

Interest expense on convertible bonds, net of tax

     8,990
      
   (Won) 1,353,369

Denominator:

  

Number of shares used in basic computation

     358

Weighted average effect of dilutive securities

  

Add:

  

Convertible bonds unexercised

     7
      
     365

Diluted earnings per share

   (Won) 3,708
      

 

(1) For the year ended December 31, 2005, issuance of 32,500 thousand shares of common stock (American Depositary Shares) in July 2005, were included in the computation of weighted-average number of common shares outstanding.
This excerpt taken from the LPL 20-F filed Apr 11, 2007.

15. Earnings (Loss) Per Share

An earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the year.

Diluted earnings (loss) per share is computed in a manner consistent with that of basic earnings (loss) per share while giving effect to all potentially dilutive common shares that were outstanding during the period.

Earnings (Loss) per share for the years ended December 31, 2004, 2005 and 2006 is calculated as follows:

 

(In millions, except for per share amount)

   2004    2005    2006  

Net income (loss) as reported on the income statements

   (Won) 1,703,687    (Won) 541,649    (Won) (692,779 )

Weighted-average number of common shares outstanding1

     305      339      358  
                      

Earnings (Loss) per share

   (Won) 5,586    (Won) 1,596    (Won) (1,936 )
                      

1

For the year ended December 31, 2005, issuance of 32,500 thousand shares of common stock (American Depositary Shares) in July 2005, were included in the computation of weighted-average number of common shares outstanding.

Convertible bonds, which have a potentially dilutive effect by decreasing net income (loss) allocated to common stock, were excluded from the computation of diluted EPS since they did not have a dilutive effect.

EXCERPTS ON THIS PAGE:

20-F
Apr 16, 2008
20-F
Apr 11, 2007

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