Earnings per Share

3 Months Ended

Mar. 30, 2025

7. Earnings per Share

We compute earnings per share using the two-class method. The two-class method requires an earnings allocation formula that determines earnings per share for common shareholders and participating security holders according to dividends declared and participating rights in undistributed earnings. Time-based restricted stock awards are participating securities because holders of such unvested shares have rights to receive non-forfeitable dividends. Under the two-class method, total dividends provided to the holders of participating securities are subtracted from net income attributable to the Company to determine net income attributable to common shareholders. The Company may, at its sole discretion, require any dividends

paid on the unvested restricted stock awards to be paid in shares rather than in cash, which could then be forfeited if the employee forfeits the underlying awards.

Basic earnings per common share are computed by dividing net income attributable to common shareholders by the weighted-average common shares outstanding. Diluted earnings per common share are computed by dividing the net income attributable to common shareholders by the diluted weighted average common shares outstanding. Diluted weighted average common shares outstanding consist of basic weighted average common shares outstanding plus weighted average awards outstanding under our equity compensation plans, which are dilutive securities.

The calculations of basic and diluted earnings per common share are as follows (in thousands, except per share data):


	Three Months Ended
	March 30, 2025		March 31, 2024
Calculation of net income attributable to common shareholders
Net income attributable to the Company	$	9,222	$	14,636

Net income attributable to participating securities	(194)		—
Net income attributable to common shareholders	$	9,028	$	14,636

Basic earnings per common share
Basic weighted average common shares outstanding	32,778		32,644
Basic earnings per common share	$	0.28	$	0.45

Diluted earnings per common share
Weighted average common shares outstanding	32,778		32,644
Dilutive effect of outstanding equity awards (a)	142		265
Diluted weighted average common shares outstanding	32,920		32,909
Diluted earnings per common share	$	0.27	$	0.44

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(a) Excludes 219,417 and 103,000 shares underlying equity awards for the three months ended March 30, 2025 and March 31, 2024, respectively, as the effect of including such awards would have been anti-dilutive.