Net Income per Common Share

9 Months Ended

Sep. 28, 2024

14.

NET INCOME PER COMMON SHARE

The reconciliations of basic and diluted net income per common share for the three and nine months ended September 28, 2024 and September 30, 2023 are set forth in the table below (in thousands, except per share data):


	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Net income available to common shareholders, basic and diluted	$	13,959	$	16,036	$	40,743	$	87,731
Weighted average number of common shares outstanding, basic (1)		90,366		90,366		90,366		90,366
Effect of dilutive securities (1)		—		—		—		30
Weighted average number of common shares outstanding, diluted (1)		90,366		90,366		90,366		90,396
Net income per common share:
Basic (1)	$	0.15	$	0.18	$	0.45	$	0.97
Diluted (1)	$	0.15	$	0.18	$	0.45	$	0.97

(1)

The outstanding shares and per share amounts have been retrospectively adjusted to reflect the Common Stock Conversion. Refer to Note 1, Organization and Summary of Significant Accounting Policies, and Note 18, Subsequent Events, for further information.

Vested stock options under the 2022 Plan are contractually participating securities because option holders have a non-forfeitable right to receive dividends when the Company exceeds a stated distributable amount. The stated distributable amount was not met during both the three and nine months ended September 28, 2024 and September 30, 2023, and therefore, the stock options were not considered as participating in undistributed earnings in the computation of basic and diluted net income per common share for the periods.

Prior to the February 2023 amendment to the 2022 Plan, there were 1.6 million shares of common stock from outstanding stock options that were excluded from the calculation of diluted net income per common share during the nine months ended September 30, 2023. Due to the reclassification of all equity-classified stock options and RSUs to liability-classified as a result of the February 2023 amendment to the 2022 Plan, the Company no longer has share-settled stock options or RSUs, and therefore, there were no anti-dilutive shares of common stock from outstanding stock options to exclude from the calculation of diluted net income per common share subsequent to the amendment. In October 2024, the 2022 Plan was further amended to provide for share-settlement of all unexercised stock options and unvested RSUs, and as a result, the liability-classified awards were reclassified as equity in accordance with ASC 718. Refer to Note 18, Subsequent Events, for further information.