Net Income Per Share

6 Months Ended

Jul. 04, 2023

5. NET INCOME PER SHARE

Basic and diluted net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. The number of diluted shares reflects the potential dilution that could occur if holders of in-the-money options and warrants were to exercise their right to convert these instruments into common stock and the restrictions on restricted stock units (“RSUs”) were to lapse. Additionally, performance-based RSUs are considered contingent shares; therefore, at each reporting date we determine the probable number of shares that will vest and include these contingently issuable shares in our diluted share calculation unless they are anti-dilutive. Once these performance-based RSUs vest, they are included in our basic net income per share calculation.

The following table presents a reconciliation of basic and diluted net income per share, including the number of dilutive equity awards included in the dilutive net income per share computation (in thousands):


	For the Thirteen Weeks Ended				For the Twenty-Six Weeks Ended
	July 4, 2023		June 28, 2022		July 4, 2023		June 28, 2022
Numerator:
Net income	$	11,932	$	297	$	15,413	$	1,757
Denominator:
Weighted-average shares outstanding – basic		23,539		23,434		23,510		23,405
Dilutive effect of equity awards		432		142		451		253
Weighted-average shares outstanding – diluted		23,971		23,576		23,961		23,658

Net income per share:
Basic	$	0.51	$	0.01	$	0.66	$	0.08
Diluted	$	0.50	$	0.01	$	0.64	$	0.07

For the thirteen weeks ended July 4, 2023 and June 28, 2022, there were approximately 0.9 million and 2.2 million of equity awards, respectively, that were excluded from the calculation of diluted net income per share because they are anti-dilutive. For the twenty-six weeks ended July 4, 2023 and June 28, 2022, there were approximately 0.9 million and 2.0 million of equity awards, respectively, that were excluded from the calculation of diluted net income per share because they are anti-dilutive.