Earnings per Share

9 Months Ended

Mar. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

Earnings per Share

Basic earnings per share ("EPS") is computed based on the weighted-average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted-average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options, warrants, non-vested restricted stock awards and units, and non-vested performance stock units that have been earned.

The following table sets forth the computations of basic and diluted EPS for the three and nine months ended March 30, 2012 and March 25, 2011:

	Three Months Ended				Nine Months Ended
	March 30, 2012		March 25, 2011		March 30, 2012		March 25, 2011
Net income applicable to TRC Companies, Inc.	$	3,881	$	952	$	27,780	$	6,158
Accretion charges on preferred stock	—		—		—		(7,261		)
Net income (loss) applicable to TRC Companies, Inc.'s common shareholders	$	3,881	$	952	$	27,780	$	(1,103	)
Basic weighted-average common shares outstanding	27,887		27,190		27,733		22,957
Effect of dilutive stock options and restricted stock	1,056		731		886		—
Diluted weighted-average common shares outstanding	28,943		27,921		28,619		22,957
Earnings (loss) per common share applicable to TRC Companies, Inc.'s common shareholders:
Basic earnings (loss) per common share	$	0.14	$	0.04	$	1.00	$	(0.05	)
Diluted earnings (loss) per common share	$	0.13	$	0.03	$	0.97	$	(0.05	)
Anti-dilutive stock options, warrants, RSA's, RSU's, and PSU's excluded from the calculation	1,766		2,360		1,986		2,946

For the nine months ended March 25, 2011, the Company reported a net loss applicable to common shareholders; therefore, the potentially dilutive shares were anti-dilutive and were excluded from the calculation of diluted loss per share in accordance with Accounting Standards Codification ("ASC") Topic 260, Earnings Per Share. The preferred stock converted to common stock on December 1, 2010, resulting in the inclusion of 3,204 shares in the basic weighted-average shares outstanding for the nine months ended March 25, 2011. Because the effects are anti-dilutive, 4,005 of the 7,209 common shares from the preferred stock conversion on December 1, 2010 were excluded from the calculation of diluted EPS for the nine months ended March 25, 2011. The holders of the convertible preferred stock did not have a contractual obligation to share in the net losses of the Company, and, as such, the undistributed net losses for the nine months ended March 25, 2011 were not allocated to the convertible preferred stock.