Note 6 - Income (Loss) per Share

9 Months Ended

Oct. 03, 2015

6. Net Income per Share

The Company uses the two-class method to compute basic and diluted net income or loss per common share. In periods of net loss, no effect is given to the Company’s participating securities as they do not contractually participate in the losses of the Company. The following table sets forth the computation of basic and diluted net income per share (in thousands, except share and per share data):

	Thirteen weeks ended				Thirty-nine weeks ended
	October 3,		September 27,		October 3,		September 27,
	2015		2014		2015		2014

NUMERATOR:
Net income before allocation of earnings to participating securities	$	1,067	$	1,820	$	7,260	$	2,542
Less: Earnings allocated to participating securities		18		49		140		82
Net income after allocation of earnings to participating securities	$	1,049	$	1,771	$	7,120	$	2,460

DENOMINATOR:
Weighted average number of common shares outstanding - basic		16,670,358		16,971,416		16,834,968		16,899,245
Dilutive effect of share-based awards		220,364		160,790		236,623		209,665
Weighted average number of common shares outstanding - dilutive		16,890,722		17,132,206		17,071,591		17,108,910
Basic income per common share attributable to Build-A-Bear Workshop, Inc. stockholders	$	0.06	$	0.10	$	0.42	$	0.15
Diluted income per common share attributable to Build-A-Bear Workshop, Inc. stockholders	$	0.06	$	0.10	$	0.42	$	0.14

For the thirteen and thirty-nine weeks ended October 3, 2015, 68,961options to purchase shares of common stock were excluded from the denominator for diluted loss per common share because of their anti-dilutive effect. For the thirteen and thirty-nine weeks ended

September 27, 2014, options to purchase 136,168 shares of common stock were excluded from the denominator for diluted loss per common share because of their anti-dilutive effect.