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Earnings Per Share ("EPS") and Dividends
9 Months Ended
Nov. 03, 2018
Earnings Per Share [Abstract]  
Earnings Per Share ("EPS") and Dividends

2.

EARNINGS PER SHARE (“EPS”) AND DIVIDENDS

Basic net loss per share (“Basic EPS”) is computed by dividing net loss by the weighted average number of common shares outstanding, excluding restricted stock awards for which the restrictions have not lapsed. Diluted net loss per share (“Diluted EPS”) is computed by dividing net loss by the weighted average number of common shares outstanding, after giving effect to the potential dilution, if applicable, from the assumed lapse of restrictions on restricted stock and restricted stock unit (“RSU”) awards, and from shares of common stock resulting from the assumed exercise of outstanding stock options. Common shares issuable in connection with the award of performance-based restricted stock units (“PRSUs”) are excluded from the calculation of EPS until the PRSUs’ performance conditions are achieved and the shares in respect of the PRSUs become issuable (see Note 13).

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

 

 

 

Three Months Ended

 

 

 

November 3, 2018

 

 

October 28, 2017

 

 

 

Net Loss

 

 

Shares

 

 

EPS

 

 

Net Loss

 

 

Shares

 

 

EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted EPS

 

$

(4,114

)

 

 

13,895

 

 

$

(0.30

)

 

$

(7,523

)

 

 

13,800

 

 

$

(0.55

)

 

 

 

Nine Months Ended

 

 

 

November 3, 2018

 

 

October 28, 2017

 

 

 

Net Loss

 

 

Shares

 

 

EPS

 

 

Net Loss

 

 

Shares

 

 

EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted EPS

 

$

(7,925

)

 

 

13,867

 

 

$

(0.57

)

 

$

(11,439

)

 

 

13,777

 

 

$

(0.83

)

 

 

In addition to PRSUs, for the three and nine months ended November 3, 2018 stock options and unvested restricted stock totaling approximately 436,000 and 804,000 shares, respectively, were excluded from the calculation of Diluted EPS as their effect would have been antidilutive. Stock options and unvested restricted stock totaling approximately 1,130,000 and 1,604,000 shares of the Company’s common stock were outstanding as of November 3, 2018 and October 28, 2017, respectively, but were not included in the computation of Diluted EPS for the three and nine months ended November 3, 2018 and October 28, 2017 due to the Company’s net loss. If the Company had reported a profit for the three and nine months ended November 3, 2018 and for the three and nine months ended October 28, 2017 the weighted average number of dilutive shares outstanding for computation of Diluted EPS would have been approximately 14,186,000, 14,159,000, 13,811,000 and 13,797,000 shares, respectively.

During the nine months ended November 3, 2018 and October 28, 2017, $7,000 and $15,000, respectively, 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 restricted stock awards.