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Earnings per Share
 6 Months Ended
Jul. 02, 2017
Earnings Per Share [Abstract]  
Earnings per Share

Note 3 – Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share:

 

 

Quarter Ended

 

 

Six Months Ended

 

(Dollars and shares in thousands, except per share amounts)

 

July 2,

 

 

July 3,

 

 

July 2,

 

 

July 3,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations, net of tax

 

$

296

 

 

$

1,198

 

 

$

3,093

 

 

$

3,594

 

Loss from discontinued operations, net

 

 

(110

)

 

 

(111

)

 

 

(223

)

 

 

(217

)

Net income

 

$

186

 

 

$

1,087

 

 

$

2,870

 

 

$

3,377

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (denominator for basic earnings per share)

 

 

14,695

 

 

 

14,888

 

 

 

14,695

 

 

 

14,943

 

Effect of dilutive securities

 

 

210

 

 

 

-

 

 

 

105

 

 

 

11

 

Adjusted weighted average shares and assumed conversions

     (denominator for diluted earnings per share)

 

 

14,905

 

 

 

14,888

 

 

 

14,800

 

 

 

14,954

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations, net of tax

 

$

0.02

 

 

$

0.08

 

 

$

0.21

 

 

$

0.24

 

Loss from discontinued operations, net

 

 

(0.01

)

 

 

(0.01

)

 

 

(0.02

)

 

 

(0.01

)

Basic earnings per share

 

$

0.01

 

 

$

0.07

 

 

$

0.20

 

 

$

0.23

 

Diluted earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations, net of tax

 

$

0.02

 

 

$

0.08

 

 

$

0.21

 

 

$

0.24

 

Loss from discontinued operations, net

 

 

(0.01

)

 

 

(0.01

)

 

 

(0.02

)

 

 

(0.01

)

Diluted earnings per share

 

$

0.01

 

 

$

0.07

 

 

$

0.19

 

 

$

0.23

 

Diluted earnings per share of common stock is computed similarly to basic earnings per share except the weighted average shares outstanding are increased to include additional shares from the assumed exercise of any common stock equivalents, if dilutive.  The J. Alexander’s Holdings, LLC Class B Units are considered common stock equivalents for this purpose.  The number of additional shares of common stock related to these common stock equivalents is calculated using the if-converted method.  The Class B Units associated with management’s profits interest awards are considered to be anti-dilutive and, therefore, have been excluded from the diluted earnings per share calculations for the quarters and six-month periods ended July 2, 2017 and July 3, 2016.  However, the Black Knight profits interest Class B Units were considered dilutive for the quarter and six-month period ended July 2, 2017, and the impact on the number of weighted average shares in the diluted earnings per share calculation was 210,309 and 105,155, respectively.  The Black Knight Class B Units were considered anti-dilutive for the quarter ended July 3, 2016, but were dilutive for the six-month period ended July 3, 2016, and the impact on the number of weighted average shares in the diluted earnings per share calculation was 10,603 for the six-month period.

The number of additional shares of common stock related to stock option awards is calculated using the treasury method, if dilutive.  The 985,750 and 450,750 stock option awards outstanding as of July 2, 2017 and July 3, 2016, respectively, were considered antidilutive and, therefore, are excluded from the diluted earnings per share calculation for the quarters and six-month periods then ended.