Earnings Per Share

9 Months Ended

Jan. 25, 2025

We follow the provisions of Accounting Standards Codification 260, Earnings Per Share ("ASC 260"), where basic earnings per share ("EPS") is computed by dividing income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution which may occur if securities or other obligations to issue common stock were exercised or converted into shares of common stock or resulted in the issuance of shares of common stock which share in our earnings.

The following is a reconciliation of the net income and common share amounts used in the calculation of basic and diluted EPS for the three and nine months ended January 25, 2025 and January 27, 2024:


	Three Months Ended				Nine Months Ended
	January 25, 2025		January 27, 2024		January 25, 2025		January 27, 2024
Earnings per share - basic
Net (loss) income	$	(17,156)	$	10,742	$	(696)	$	32,103
Weighted average shares outstanding	47,764		46,173		46,944		45,975
Basic earnings per share	$	(0.36)	$	0.23	$	(0.01)	$	0.70

Earnings per share - diluted
Net (loss) income	$	(17,156)	$	10,742	$	(696)	$	32,103
Change in fair value of convertible note	—		(6,340)		—		—
Interest expense on convertible note, net of tax	—		404		—		—
Diluted net income	$	(17,156)	$	4,806	$	(696)	$	32,103

Weighted average common shares outstanding	47,764		46,173		46,944		45,975
Dilution associated with stock compensation plans	—		627		—		633
Dilution associated with convertible note	—		4,037		—		—
Weighted average common shares outstanding, assuming dilution	47,764		50,837		46,944		46,608

Diluted earnings per share	$	(0.36)	$	0.09	$	(0.01)	$	0.69

During the three months ended January 25, 2025, a total of 934 shares of potential common stock related to stock compensation plans were excluded from the computation of diluted EPS because the effects would be anti-dilutive. The excluded shares include options outstanding to purchase 29 shares of common stock with a weighted average exercise price of $11.87. For the three months ended January 27, 2024, options outstanding to purchase 484 shares of common stock with a weighted average exercise price of $10.73 were not included in the computation of diluted EPS because the effects would be anti-dilutive.

During the nine months ended January 25, 2025, a total of 992 shares of potential common stock relating to the stock compensation plan were excluded from the computation of diluted EPS because the effects would be anti-dilutive. The excluded shares include options outstanding to purchase 51 shares of common stock with a weighted average exercise price of $10.43. For the nine months ended January 27, 2024, options outstanding to purchase 695 shares of common stock with a weighted average exercise price of $10.30 were not included in the computation of diluted EPS because the effects would be anti-dilutive.

During the three months ended January 25, 2025, 3,079 potential shares of common stock issuable upon conversion of the senior secured convertible note dated May 11, 2023 issued to Alta Fox Opportunities Fund, LP (the Holder," and collectively with its affiliates, "Alta Fox") during fiscal 2024 (the "Convertible Note") were not included in the computation of diluted EPS, as the effect would be anti-dilutive. The 2,218 common shares attributed to settling a portion of the Convertible Note, but not yet been issued, were weighted for the number of days outstanding from the settlement date and included in the weighted average shares outstanding in the computation of diluted EPS.

For the nine months ended January 25, 2025, 3,697 potential common shares issuable upon conversion of the Convertible Note were not included in the computation of diluted EPS, as the effect would be anti-dilutive. The 2,218 common shares attributed to settling a portion of the Convertible Note, but not yet been issued, were weighted for the number of days outstanding from the settlement date and included in the weighted average shares outstanding in the computation of diluted EPS.

During the nine months ended January 27, 2024, 3,875 potential shares of common stock issuable upon conversion of the Convertible Note were not included in the computation of diluted EPS, as the effect would be anti-dilutive.