Earnings per Share

3 Months Ended

Apr. 02, 2022

Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period, excluding unvested restricted shares. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. The effect of potentially dilutive securities is not considered during periods of loss or if the effect is anti-dilutive.

The weighted average number of shares outstanding in calculating basic earnings per share for the three months ended April 2, 2022 and April 3, 2021 exclude 743,496 and 767,186 non-vested restricted shares, respectively. During the three months ended April 2, 2022 and April 3, 2021, there were 31,439 and 8,023 weighted average securities, respectively, which are not included in the calculation of diluted weighted average shares outstanding because their impact is anti-dilutive or their performance conditions have not been met.

The following table represents a reconciliation of the net income and weighted average shares outstanding for the calculation of basic and diluted earnings per share:


	Three Months Ended
	April 2, 2022		April 3, 2021
Numerator:
Net income – basic and diluted	$	8,642	$	5,480

Denominator:
Basic weighted average shares outstanding	14,693,323		12,876,822
Effect of dilutive non-vested restricted shares and units	505,534		527,957
Effect of issuable shares related to acquisitions	17,248		24,323

Diluted weighted average shares outstanding	15,216,105		13,429,102

Secondary Offering

On March 10, 2021, the Company priced an underwritten public offering of 1,612,903 shares of its common stock (the "Firm Shares") at a price of $93.00 per share. The shares were sold pursuant to an effective registration statement on Form S-3 (Registration No. 333-237167). In addition, the Company also granted the underwriters a 30-day option to purchase 241,935 additional shares (the "Option Shares") of its common stock at the public offering price. On March 15, 2021, the Company closed on the Firm Shares, for which it received net proceeds of approximately $140,693 after deducting the underwriting discount and estimated offering expenses payable by the Company. On April 13, 2021, the underwriters exercised the Option Shares and the Company received net proceeds of $21,150 after deducting the underwriting discount and estimated offering expenses payable by the Company.