Earnings (Loss) Per Share

3 Months Ended

Apr. 03, 2022

Basic earnings (loss) per share ("EPS") is computed by dividing net income (loss) applicable to common shares by the weighted average number of common shares outstanding during each period. Non-vested restricted shares contain a non-forfeitable right to receive dividends on a one-to-one per share ratio to common shares and are thus considered participating securities. The impact of the participating securities is included in the computation of basic EPS pursuant to the two-class method. The two-class method of computing EPS is an earnings allocation formula that determines earnings attributable to common shares and participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. EPS is computed by dividing undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and non-vested restricted shares based on the weighted average shares outstanding during the period.

Diluted EPS reflects the potential dilution that could occur if the restricted stock units were to be converted into common shares. Restricted stock units with performance conditions are only included in the diluted EPS calculation to the extent that performance conditions have been met at the measurement date. Diluted EPS is computed by adjusting the basic weighted average number of common shares by the dilutive effect of the restricted stock units, determined using the treasury stock method.

All outstanding restricted stock units in the three months ended April 3, 2022 were performance-based awards which had not yet met their performance conditions as of April 3, 2022. For the three months ended April 4, 2021, all shares of outstanding restricted stock units were excluded from the computation of diluted EPS because including these restricted stock units would have been antidilutive as a result of the loss from continuing operations in the three months ended April 4, 2021.

The computation of basic and diluted EPS is as follows:


	Three Months Ended
		April 3, 2022		April 4, 2021
Basic and diluted EPS:
Loss from continuing operations		$	(1,301)	$	(695)
Loss from discontinued operations, net of tax		(55)		(1,394)
Net loss		$	(1,356)	$	(2,089)
Less: income allocated to participating securities		—		—
Net loss available to common shareholders		$	(1,356)	$	(2,089)
Weighted average common shares—basic		24,832,541		25,324,213
Restricted stock units		—		—
Weighted average common shares—diluted		24,832,541		25,324,213

Earnings (loss) from continuing operations per common share—basic		$	(0.05)	$	(0.03)
Earnings (loss) from discontinued operations per common share—basic		—		(0.05)
Earnings (loss) per common share—basic		$	(0.05)	$	(0.08)

Earnings (loss) from continuing operations per common share—diluted		$	(0.05)	$	(0.03)
Earnings (loss) from discontinued operations per common share—diluted		—		(0.05)
Earnings (loss) per common share—diluted		$	(0.05)	$	(0.08)