Note 6 - Income Per Share

6 Months Ended

Jul. 02, 2016

6. (Loss) Income per Share

The Company uses the two-class method to compute basic and diluted (loss) income per common share. In periods of 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 (loss) income per share (in thousands, except share and per share data):

	Thirteen weeks ended						Twenty-six weeks ended
	July 2, 2016			July 4, 2015			July 2, 2016			July 4, 2015

NUMERATOR:
Net (loss) income before allocation of earnings to participating securities	$	(4,301	)	$	(628	)	$	(783	)	$	6,194
Less: Earnings allocated to participating securities		-			-			-			127
Net (loss) income after allocation of earnings to participating securities	$	(4,301	)	$	(628	)	$	(783	)	$	6,067

DENOMINATOR:
Weighted average number of common shares outstanding - basic		15,486,462			16,861,458			15,448,580			16,917,272
Dilutive effect of share-based awards:		-			-			-			244,752
Weighted average number of common shares outstanding - dilutive		15,486,462			16,861,458			15,448,580			17,162,024
Basic (loss) income per common share attributable to Build-A-Bear Workshop, Inc. stockholders:	$	(0.28	)	$	(0.04	)	$	(0.05	)	$	0.36
Diluted (loss) income per common share attributable to Build-A-Bear Workshop, Inc. stockholders	$	(0.28	)	$	(0.04	)	$	(0.05	)	$	0.35

In calculating diluted (loss) income per share for the thirteen and twenty-six week periods ended July 2, 2016, options to purchase 763,535 shares of common stock that were outstanding at the end of the period were not included in the computation of diluted net loss per share due to their anti-dilutive effect. For the thirteen and twenty-six week periods ended July 4, 2015, the number of options to purchase common shares that were excluded from the calculation was 609,043 and 69,114 shares, respectively.

Due to the net loss for the thirteen week periods ended July 2, 2016 and July 4, 2015 and in the twenty-six week period ended July 2, 2016, the denominator for diluted loss per common share is the same as the denominator for basic loss per common share for those periods because the inclusion of stock options and unvested restricted shares would be anti-dilutive.