BASIC AND DILUTED EARNINGS PER SHARE

6 Months Ended

Jun. 29, 2013

BASIC AND DILUTED EARNINGS PER SHARE

BASIC AND DILUTED EARNINGS PER SHARE

3. BASIC AND DILUTED EARNINGS PER SHARE

Basic earnings (loss) per share has been computed based upon the weighted average of common shares outstanding. Diluted earnings (loss) per share also includes the dilutive effect of potential common shares (dilutive stock options and unvested restricted stock awards) outstanding during the period. Earnings (loss) per common share has been computed as follows:

	26-Weeks Ended						13-Weeks Ended
	June 29,			June 30,			June 29,			June 30,
	2013			2012			2013			2012
Net income (loss)	$	(21,663,000	)	$	(177,000	)	$	(3,158,000	)	$	1,031,000
Basic weighted number of average shares outstanding	15,769,000			12,877,000			18,378,000			12,880,000
Incremental shares from assumed issuances of stock options and restricted stock awards	—			—			—			48,000
Diluted weighted average number of shares outstanding	15,769,000			12,877,000			18,378,000			12,928,000
Earnings (loss) per share - Basic	$	(1.37	)	$	(0.01	)	$	(0.17	)	$	0.08
- Diluted	$	(1.37	)	$	(0.01	)	$	(0.17	)	$	0.08

The accompanying financial statements reflect for fiscal 2012 the issuance of all restricted stock awards as if issued on the original grant date. The Company previously had been issuing restricted stock awards only when the awards vested. This change in reporting had no effect on the Company’s financial statements except for the number of shares outstanding at June 30, 2012.

Options and unvested restricted common shares totaling 1,696,383 and 1,277,340 were excluded from the computation of diluted loss per share for the 26-week periods ended June 29, 2013 and June 30, 2012 due to the net loss incurred by the Company.

Options and unvested restricted common shares totaling 1,696,383 were excluded from the computation of diluted earnings loss per share for the 13-week period ended June 29, 2013 due to the net loss incurred by the Company.   Options to purchase 681,675 common shares were excluded from the computation of diluted earnings per share for the 13-week period ended June 30, 2012 due to the anti-dilutive effect caused by the exercise price exceeding the average market price.  Unvested restricted common shares of 457,550 were excluded from the computation of diluted earnings per share for the 13-week period ended June 30, 2012, respectively, due to contingent restrictive shares not meeting their performance goals.