EARNINGS (LOSS) PER SHARE

3 Months Ended

Mar. 27, 2015

EARNINGS (LOSS) PER SHARE [Abstract]

EARNINGS (LOSS) PER SHARE

Note 3.   EARNINGS (LOSS) PER SHARE

The consolidated financial statements include basic and diluted earnings (loss) per share. Diluted per share information is calculated by considering the impact of potential common stock on the weighted average shares outstanding. Potential common stock consists of (a) incremental shares that would be available for issuance upon the assumed exercise of stock options “in the money” based on the average stock price for the respective period and (b) convertible preferred shares, owned by Kohlberg & Co. LLC (see Note 8), accounted for using the “if converted” basis, which assumes their conversion to common stock at a ratio of 16.6:1. The basic and diluted earnings per share (“EPS”) calculations are as follows:

	Three Months Ended
	March 27, 2015			March 28, 2014
Net (loss) income	$	(1,836	)	$	1,162
Average common shares outstanding - Basic		7,951			7,951
Dilutive effect of convertible preferred stock		-			18,859
Average common shares outstanding - Diluted		7,951			26,810
Per share amount - Basic:	$	(0.23	)	$	0.15
Per share amount - Diluted:	$	(0.23	)	$	0.04

As of March 27, 2015, no options were in the money and 6,000 options were out of the money. As of March 28, 2014, no options were in the money and 12,000 options were out of the money. At March 27, 2015 and March 28, 2014, 1,131,551 convertible preferred shares were outstanding, which are in total convertible into 18,859,183 shares of the Company’s common stock. Convertible preferred shares were not included in the calculation of diluted earnings (loss) per share for the three months ended March 27, 2015 because of their anti-dilutive impact as a result of the Company’s net loss position.