NET INCOME PER SHARE

9 Months Ended

Jun. 26, 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				Nine Months Ended
Net Income Per Share	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
(in thousands, except share and per share data)
Basic net income per share:
Net income	$	2,114	$	1,211	$	4,826	$	2,953
Less: Income attributable to non-vested shares	10		10		23		25
Net income available to common stockholders	$	2,104	$	1,201	$	4,803	$	2,928
Weighted average common shares outstanding	10,424,056		10,332,548		10,388,872		10,294,173
Basic net income per share	$	0.20	$	0.12	$	0.46	$	0.28
Diluted net income per share:
Net income	$	2,114	$	1,211	$	4,826	$	2,953
Shares used in computing basic net income per share	10,424,056		10,332,548		10,388,872		10,294,173
Dilutive effect of non-vested shares	334,036		309,855		308,416		262,780
Shares used in computing diluted net income per share	10,758,092		10,642,403		10,697,288		10,556,953
Diluted net income per share	$	0.20	$	0.11	$	0.45	$	0.28

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

	Three Months Ended		Nine Months Ended
	June 26, 2020	June 28, 2019	June 26, 2020	June 28, 2019
Anti-dilutive shares excluded	—	52,523	—	39,872