Earnings Per Share

6 Months Ended

Jun. 30, 2016

NOTE 11 – EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the weighted average number of shares outstanding. Diluted earnings per share is computed by also considering the impact of potential common stock on both net income and the weighted average number of shares outstanding. Our potential common stock consists of employee and director stock options, restricted stock, restricted stock units and performance-based awards. Our potential common stock is excluded from the basic earnings per share calculation and is included in the diluted earnings per share calculation when doing so would not be anti-dilutive. In 2015, we granted performance-based stock options and restricted stock units. These performance-based awards are included in the computation of diluted earnings per share only to the extent that the underlying performance conditions (and any applicable market condition) (a) are satisfied as of the end of the reporting period or (b) would be considered satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive under the treasury stock method. For the three and six months ended June 30, 2016 there were approximately 1,046,201 and 1,075,373, respectively, additional shares issuable upon exercise of anti-dilutive options and contingent vesting of performance-based awards, which were excluded from the dilutive calculations. The effect of 797,983 and 785,884 additional shares were not included in the dilutive calculations for the three and six months ended June 27, 2015, respectively.

A reconciliation of the number of common shares used in the calculation of basic and diluted earnings per share (“EPS”) is presented below:


	Three Months Ended
	June 30, 2016				June 27, 2015
			Per-Share				Per-Share
	Shares		Amount		Shares		Amount
Basic EPS		16,659,115	$	0.20		17,384,382	$	0.24
Effect of dilutive securities		13,485		—		117,837		—

Diluted EPS		16,672,600	$	0.20		17,502,219	$	0.24

	Six Months Ended
	June 30, 2016				June 27, 2015
			Per-Share				Per-Share
	Shares		Amount		Shares		Amount
Basic EPS		16,634,323	$	0.39		17,360,749	$	0.28
Effect of dilutive securities		20,092		—		139,870		(0.01	)

Diluted EPS		16,654,415	$	0.39		17,500,619	$	0.27