Net income (Loss) Per Share

9 Months Ended

Oct. 01, 2023

Net Income (Loss) per Share

The Company applies the two-class method to calculate and present net income (loss) per share. The Company's non-vested restricted share awards and Series D Convertible Preferred Stock contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing net loss 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. As the Company incurred a net loss for the three and nine months ended October 2, 2022, and losses are not allocated to participating securities under the two-class method, such method is not applicable for the aforementioned interim reporting period.

Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted net income (loss) per share reflects additional shares of common stock outstanding, where applicable, calculated using the treasury stock method or the two-class method.

The following table sets forth the calculation of basic and diluted net income (loss) per share:


	Three Months Ended				Nine Months Ended
	October 1, 2023		October 2, 2022		October 1, 2023		October 2, 2022
Basic net income (loss) per share:
Net income (loss)	$	12,618	$	(8,697)	$	28,436	$	(56,442)
Less: Income attributable to non-vested shares	(696)		—		(1,364)		—
Less: Income attributable to preferred stock	(1,841)		—		(4,181)		—
Net income (loss) available to common stockholders	$	10,081	$	(8,697)	$	22,891	$	(56,442)
Weighted average common shares outstanding	51,560,307		50,805,461		51,506,367		50,689,730
Basic net income (loss) per share	$	0.20	$	(0.17)	$	0.44	$	(1.11)
Diluted net income (loss) per share:
Net income (loss)	$	12,618	$	(8,697)	$	28,436	$	(56,442)
Shares used in computing diluted net income (loss) per share	51,560,307		50,805,461		51,506,367		50,689,730
Dilutive effect of preferred stock and non-vested shares	11,267,568		—		10,618,097		—
Shares used in computing diluted net income (loss) per share	62,827,875		50,805,461		62,124,464		50,689,730
Diluted net income (loss) per share	$	0.20	$	(0.17)	$	0.44	$	(1.11)
Shares excluded from diluted net income (loss) per share computations(1)	—		11,921,161		—		11,921,161

(1)Shares issuable upon conversion of preferred stock and non-vested shares (including non-vested restricted stock units) were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive in such periods.