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

Basic net income (loss) (or earnings) per share (“Basic EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding, excluding restricted stock awards for which the restrictions have not lapsed. Diluted net income (loss) (or earnings) per share (“Diluted EPS”) is computed by dividing net income (loss) 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
	October 29, 2016								October 31, 2015
	Net Loss			Shares		EPS			Net Loss			Shares		EPS

Basic EPS	$	(1,506	)		13,702	$	(0.11	)	$	(1,274	)		13,591	$	(0.09	)
Incremental shares from the assumed exercise of outstanding stock options		—			—					—			—
Incremental shares from the assumed lapse of restrictions on restricted stock awards		—			—					—			—
Diluted EPS	$	(1,506	)		13,702	$	(0.11	)	$	(1,274	)		13,591	$	(0.09	)

	Nine Months Ended
	October 29, 2016						October 31, 2015
	Net Income		Shares		EPS		Net Loss			Shares		EPS

Basic EPS	$	26		13,696	$	0.00	$	(1,421	)		13,585	$	(0.10	)
Incremental shares from the assumed exercise of outstanding stock options		—		—				—			—
Incremental shares from the assumed lapse of restrictions on restricted stock awards		—		9				—			—
Diluted EPS	$	26		13,705	$	0.00	$	(1,421	)		13,585	$	(0.10	)

In addition to performance-based RSUs, for the nine months ended October 29, 2016 stock options and unvested restricted stock totaling approximately 1,063,000 shares were excluded from the calculation of Diluted EPS as their effect would have been antidilutive. Options and unvested restricted stock totaling approximately 1,270,000 and 1,114,000 shares of the Company’s common stock were outstanding as of October 29, 2016 and October 31, 2015, respectively, but were not included in the computation of Diluted EPS for the three months ended October 29, 2016 and for the three and nine months ended October 31, 2015 due to the Company’s net loss. Had the Company reported a profit for the three months ended October 29, 2016 and for the three and nine months October 31, 2015 the weighted average number of dilutive shares outstanding for computation of Diluted EPS would have been approximately 13,721,000, 13,636,000 and 13,622,000 shares, respectively.

During the nine months ended October 31, 2015 the Company paid cash dividends totaling $8,301,000 (or $0.60 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 nine months ended October 29, 2016 (see Note 7). During the nine months ended October 29, 2016 $17,000 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.