NET INCOME PER SHARE

6 Months Ended

Mar. 27, 2020

Earnings Per Share [Abstract]

NET INCOME PER SHARE

NOTE 13—NET INCOME PER SHARE

The Company applies the two-class method to calculate and present net income per share. Certain of the Company's restricted (non-vested) share awards contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing net income per share pursuant to the two-class method. Under the two-class method, net earnings are reduced by the amount of dividends declared (whether paid or unpaid) and the remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends.

Basic earnings per common share are calculated by dividing income available to common stockholders by the weighted average number of shares outstanding during each period.  Diluted earnings per common share add to the denominator incremental shares resulting from the assumed exercise of all potentially dilutive stock options, as well as unvested restricted stock and restricted stock units.  Options, restricted stock and restricted stock units are primarily held by directors, officers and certain employees. 

The Company uses the two-class method to calculate net income per share as both classes share the same rights in dividends. Therefore, basic and diluted earnings per share (“EPS”) are the same for both classes of ordinary shares.

A summary of shares used in the EPS calculations follows (in thousands except share and per share data):

	Three Months Ended				Six Months Ended
Net Income Per Share	March 27, 2020		March 29, 2019		March 27, 2020		March 29, 2019
(in thousands, except share and per share data)
Basic net income per share:
Net income	$	1,523	$	670	$	2,712	$	1,742
Less: Income attributable to non-vested shares	8		4		15		9
Net income available to common stockholders	$	1,515	$	666	$	2,697	$	1,733
Weighted average common shares outstanding	10,393,461		10,286,876		10,379,846		10,274,772
Basic net income per share	$	0.15	$	0.06	$	0.26	$	0.17
Diluted net income per share:
Net income	$	1,523	$	670	$	2,712	$	1,742
Shares used in computing basic net income per share	10,393,461		10,286,876		10,379,846		10,274,772
Dilutive effect of non-vested shares	309,651		391,182		286,155		299,304
Shares used in computing diluted net income per share	10,703,112		10,678,058		10,666,001		10,574,076
Diluted net income per share	$	0.14	$	0.06	$	0.25	$	0.16

The diluted weighted average share calculations do not include the following shares, which are not dilutive to the EPS calculations.

	Three Months Ended		Six Months Ended
	March 27, 2020	March 29, 2019	March 27, 2020	March 29, 2019
Anti-dilutive shares excluded	—	—	—	19,583