Net Income Per Common Share

3 Months Ended

Apr. 01, 2022

2. Net Income per Common Share

Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. With regard to common stock subject to vesting requirements and restricted stock units issued to the Company’s employees and non-employee members of its Board of Directors, the calculation includes only the vested portion of such stock and units.

Diluted net income per common share is computed by dividing net income by the weighted average number of common shares outstanding, increased by the assumed conversion of other potentially dilutive securities during the period.

The following table reconciles basic and dilutive weighted average common shares:

	Quarter Ended
	April 1,		April 2,
	2022		2021
Basic weighted average common shares outstanding		31,449,408		30,207,490
Effect of dilutive securities:
Unvested restricted stock units and common stock subject to vesting requirements issued to employees and non-employees		370,033		264,210
Common stock issuable upon the exercise of stock options and SARs		24,122		2,297,467
Dilutive weighted average common shares outstanding		31,843,563		32,769,167

Approximately 6 hundred shares and 3 thousand shares of common stock equivalents were excluded from the computations of diluted net income per common share for the quarters ended April 1, 2022 and April 2, 2021, respectively, as inclusion would have had an anti-dilutive effect on diluted net income per common share.