Earnings Per Share

6 Months Ended

Jul. 04, 2021

EARNINGS PER SHARE

The Company computes basic earnings or loss per share (“EPS”) by dividing net income or loss by the weighted average common shares outstanding, including participating securities outstanding, during the period as discussed below. Diluted EPS reflects the potential dilution beyond shares for basic EPS that could occur if securities or other contracts to issue common stock were exercised, converted into common stock or resulted in the issuance of common stock that would have shared in the Company’s earnings.

The Company includes all unvested stock awards which contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of shares outstanding in the basic and diluted EPS calculations when the inclusion of these shares would be dilutive. Unvested share-based awards of restricted stock are paid dividends equally with all other shares of common stock. As a result, the Company includes all outstanding restricted stock awards in the calculation of basic and diluted EPS. Distributed earnings include common stock dividends and dividends earned on unvested share-based payment awards. Undistributed earnings represent earnings that were available for distribution but were not distributed. The following table shows the computation of basic and diluted EPS:


	Three Months Ended				Six Months Ended
	July 4, 2021		July 5, 2020		July 4, 2021		July 5, 2020
	(in thousands, except per share data)
Numerator:
Net income (loss)	$	15,511	$	4,709	$	22,449	$	(97,458)
Less: distributed and undistributed earnings available to participating securities	(192)		(38)		(229)		(35)
Distributed and undistributed earnings (loss) available to common shareholders	$	15,319	$	4,671	$	22,220	$	(97,493)

Denominator:
Weighted average shares outstanding	58,310		58,024		58,283		58,006
Participating securities	731		460		602		460
Shares for basic earnings per share	59,041		58,484		58,885		58,466
Dilutive effect of stock options	—		—		—		—
Shares for diluted earnings per share	59,041		58,484		58,885		58,466

Basic earnings (loss) per share	$	0.26	$	0.08	$	0.38	$	(1.67)
Diluted earnings (loss) per share	$	0.26	$	0.08	$	0.38	$	(1.67)

For the three and six months ended July 5, 2020, there were 20,000 stock options in each respective period excluded from the computation of diluted EPS because the impact would be anti-dilutive.