Earnings Per Share

6 Months Ended

Jul. 01, 2013

Earnings Per Share

Earnings Per Share

Note 3 — Earnings Per Share

	For the Three Months Ended					For the Six Months Ended
	(in thousands, except share data)					(in thousands, except share data)
	July 1, 2013			July 2, 2012		July 1, 2013			July 2, 2012
Net (loss) income	$	(2,135	)	$	77	$	(4,876	)	$	(1,051	)
Shares:
Weighted average number of shares outstanding	17,988,624			12,901,745		17,969,198			12,882,662
Dilutive non-vested stock awards	—			45,238		—			—
Diluted weighted average number of shares outstanding	17,988,624			12,946,983		17,969,198			12,882,662
Basic earnings per share	$	(0.12	)	$	0.01	$	(0.27	)	$	(0.08	)
Diluted earnings per share	$	(0.12	)	$	0.01	$	(0.27	)	$	(0.08	)

Basic earnings per share is calculated by dividing the net income available to common shareholders by the weighted-average common shares outstanding during each period. Diluted earnings per share (“diluted EPS”) is calculated using net income available to common shareholders divided by diluted weighted-average shares of common stock outstanding during each period. Potentially dilutive securities include unvested stock and common stock related to stock options. Diluted EPS considers the impact of potentially dilutive securities except in periods of net loss because the inclusion of these securities would have had an anti-dilutive effect. As of July 1, 2013 and July 2, 2012, there were, respectively, 25,825 and 295,238 unvested restricted shares of common stock outstanding and 53,652 and 39,459 out-of-the-money stock options to purchase shares of common stock. The unvested restricted shares of common stock meet the requirements for participating securities and, hence, 45,238 of them were included in the computation of diluted earnings per share for the period of net income ended July 2, 2012. Since the remaining 250,000 unvested restricted shares as of July 2, 2012 were contingently issued, and were subject to certain market conditions, they were not included in the calculation of basic or diluted earnings per share. The outstanding stock options to purchase shares of common stock also meet the requirements of participating securities for purposes of calculating diluted EPS but were not included since they were out-of-the-money.