2.	EARNINGS PER SHARE (“EPS”) AND CASH DIVIDENDS

Basic net income (or earnings) per share (“Basic EPS”) is computed by dividing net income by the weighted average number of common shares outstanding, excluding restricted stock awards for which the restrictions have not lapsed. Diluted net income (or earnings) per share (“Diluted EPS”) is computed by dividing net income by the weighted average number of common shares outstanding, after giving effect to the potential dilution, if applicable, from the assumed exercise of outstanding stock options and from the assumed lapse of restrictions on restricted stock awards. Common shares issuable in connection with the award of performance-based restricted stock units (“RSUs”) are excluded from the calculation of EPS until the RSUs’ performance conditions are achieved and the shares in respect of the RSUs become issuable (see Note 12).

The following tables summarize the Basic EPS and Diluted EPS calculations (in thousands, except per share amounts):

	Three Months Ended
	April 30, 2016						May 2, 2015
	Net Income		Shares		EPS		Net Income		Shares		EPS

Basic EPS	$	4,041		13,684	$	0.30	$	2,535		13,581	$	0.19
Incremental shares from the assumed exercise of outstanding stock options		—		1				—		24
Incremental shares from the assumed lapse of restrictions on restricted stock awards		—		1				—		19
Diluted EPS	$	4,041		13,686	$	0.30	$	2,535		13,624	$	0.19

In addition to performance-based RSUs, for the three months ended April 30, 2016 and May 2, 2015 stock options and unvested restricted stock totaling 1,045,415 and 801,502 shares, respectively, were excluded from the calculation of Diluted EPS as their effect would have been antidilutive.

During the three months ended May 2, 2015 the Company paid cash dividends totaling $2,761,000 (or $0.20 per share). In connection with a debt refinancing in March 2016 the Company suspended its quarterly dividend and accordingly no cash dividends were paid by the Company during the three months ended April 30, 2016 (see Note 7). During the three months ended April 30, 2016 $14,000 of previously declared and undistributed dividends, for which payment was subject to completion of service requirements under restricted stock awards, were forfeited back to the Company in connection with the cancellation of the awards.