EARNINGS PER SHARE (EPS)

12 Months Ended

Jan. 02, 2015

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)

4. EARNINGS PER SHARE ("EPS")

        Basic EPS is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding. Diluted EPS is computed by dividing net income (loss) by the weighted-average number of common shares outstanding and dilutive potential common shares for the period. Potential common shares include the weighted-average dilutive effects of outstanding stock options using the treasury stock method.

        The following table sets forth the number of weighted-average shares used to compute basic and diluted EPS:

	Fiscal Year
	2014		2013		2012
Net income (loss)	$	9,416,000	$	2,630,000	$	(17,300,000	)
Weighted-average common shares outstanding		7,488,000		7,355,000		7,310,000
Effect of dilutive stock options and restricted stock awards		251,000		140,000		—
Weighted-average common stock outstanding-diluted		7,739,000		7,495,000		7,310,000
Earnings (loss) per share:
Basic	$	1.26	$	0.36	$	(2.37	)
Diluted	$	1.22	$	0.35	$	(2.37	)

        For the fiscal year ended January 2, 2015, 251,000 options were excluded from the calculation of dilutive potential common shares, compared to 459,000 and 654,000 options, for fiscal 2013 and fiscal 2012, respectively. These options were not included in the computation of dilutive potential common shares because of the net loss position for the 2012 period and because the assumed proceeds per share exceeded the average market price per share for the 2012 period. Accordingly, the inclusion of these options would have been anti-dilutive. For periods in which the Company incurs net losses, dilutive potential common shares are excluded as they would be anti-dilutive.