Net Income Per Common Share

3 Months Ended

Apr. 01, 2023

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. Anti-dilutive securities excluded from the calculation of weighted average shares outstanding for the three months ended April 1, 2023 and April 2, 2022 were insignificant.

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
	April 1,			April 2,
	2023			2022
	(in thousands, except per share amounts)
Net income	$	34,427		$	23,826
Less: Net income attributable to RNCI		(837	)		(657	)
Net income attributable to the Company		33,590			23,169
Increase in redemption value of RNCI		(1,177	)		(2,136	)
Net income attributable to common shareholders	$	32,413		$	21,033

Weighted-average number of common shares outstanding - Basic		59,818			59,831
Add: Dilutive shares from equity plans		335			388

Weighted-average number of common shares outstanding - Diluted		60,153			60,219

Net income per common share attributable to common shareholders:
Basic	$	0.54		$	0.35
Diluted	$	0.54		$	0.35