Earnings Per Share

9 Months Ended

Sep. 29, 2024

EARNINGS PER SHARE

The Company computes basic earnings per share (“EPS”) by dividing net income 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 that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of shares outstanding for basic EPS as these awards are considered participating securities. Any unvested stock awards considered non-participating securities are included in 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				Nine Months Ended
	September 29, 2024		October 1, 2023		September 29, 2024		October 1, 2023
	(in thousands, except per share data)
Numerator:
Net income	$	28,443	$	9,879	$	65,180	$	24,962
Less: distributed and undistributed earnings available to participating securities	(119)		(117)		(425)		(327)
Distributed and undistributed earnings available to common shareholders	$	28,324	$	9,762	$	64,755	$	24,635

Denominator:
Weighted average shares outstanding	58,061		57,420		57,895		57,326
Participating securities	244		687		380		761
Shares for basic EPS	58,305		58,107		58,275		58,087
Dilutive effect of non-participating securities	566		235		479		146
Shares for diluted EPS	58,871		58,342		58,754		58,233

Basic EPS	$	0.49	$	0.17	$	1.12	$	0.43
Diluted EPS	$	0.48	$	0.17	$	1.11	$	0.43

For both the three and nine months ended September 29, 2024, there were no securities excluded from the computation of diluted EPS that would have been antidilutive. For both the three and nine months ended October 1, 2023, 855,785 of non-participating securities were excluded from the computation of diluted EPS because the effect would have been antidilutive.