Earnings per Share

12 Months Ended

Dec. 31, 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 during fiscal years 2022, 2021, and 2020 exclude 742,671, 777,683, and 763,183 non-vested restricted shares, respectively. During fiscal 2022, 2021, and 2020 there were 25,979, 7,448, and 12,588 weighted average securities 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 during fiscal years 2022, 2021 and 2020:


	Fiscal Years Ended
	December 31, 2022		January 1, 2022		January 2, 2021
Numerator:
Net income – basic and diluted	$	49,973	$	47,147	$	21,018

Denominator:
Basic weighted average shares outstanding	14,753,738		14,135,333		12,362,786
Effect of dilutive non-vested restricted shares and units	490,981		498,116		303,622
Effect of issuable shares related to acquisitions	15,467		22,932		46,667
Diluted weighted average shares outstanding	15,260,186		14,656,381		12,713,075