Net Income Per Common Share

9 Months Ended

Oct. 01, 2022

NOTE 7. NET INCOME PER COMMON SHARE

Basic earnings per share (“EPS”) available to PGT Innovations, Inc. common stockholders is computed using the two-class method by dividing net income attributable to common shareholders, after deducting the redemption adjustment related to the redeemable noncontrolling interest, by the average number of common shares outstanding during the period. Diluted EPS available to PGT Innovations, Inc. common stockholders is computed using the two-class method by dividing net income attributable to common shareholders, after deducting the redemption adjustment related to the redeemable noncontrolling interest, by the average number of common shares outstanding, including the dilutive effect of common stock equivalents computed using the treasury stock method and the average share price during the period.

Dilutive shares from equity plans in the three months ended October 2, 2021 was zero, as we had a net loss attributable to common shareholders during this period which, by adding such dilutive shares would have resulted in anti-dilution to net loss per common share. Dilutive shares from equity plans for the three months ended October 2, 2021 would have been 510 thousand shares.

There were no anti-dilutive securities excluded from the calculation of weighted average shares outstanding for the three- or nine-month periods ended October 1, 2022, or October 2, 2021.

The table below presents the calculation of EPS and a reconciliation of weighted average common shares used in the calculation of basic and diluted EPS:


	Three Months Ended						Nine Months Ended
	October 1,			October 2,			October 1,			October 2,
	2022			2021			2022			2021
	(in thousands, except per share amounts)
Net income (loss)	$	30,414		$	(5,140	)	$	90,705		$	18,368
Less: Net income attributable to RNCI		(373	)		(677	)		(1,334	)		(1,656	)
Net income (loss) attributable to the Company		30,041			(5,817	)		89,371			16,712
Decrease (increase) in redemption value of RNCI		271			(965	)		(1,514	)		(4,528	)
Net income (loss) attributable to common shareholders	$	30,312		$	(6,782	)	$	87,857		$	12,184

Weighted-average number of common shares outstanding - Basic		59,964			59,590			59,908			59,475
Add: Dilutive shares from equity plans		438			—			293			560

Weighted-average number of common shares outstanding - Diluted		60,402			59,590			60,201			60,035

Net income (loss) per common share attributable to common shareholders:
Basic	$	0.51		$	(0.11	)	$	1.47		$	0.20
Diluted	$	0.50		$	(0.11	)	$	1.46		$	0.20