Net Income Per Share

3 Months Ended

Apr. 01, 2025

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 unvested restricted stock units (“RSUs”) were to vest. Additionally, performance-based restricted stock units (“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
	April 1, 2025		April 2, 2024
Numerator:
Net income	$	13,492	$	7,723
Denominator:
Weighted-average shares outstanding – basic		22,683		23,318
Dilutive effect of equity awards		601		647
Weighted-average shares outstanding – diluted		23,284		23,965

Net income per share:
Basic	$	0.59	$	0.33
Diluted	$	0.58	$	0.32

For each of the thirteen weeks ended April 1, 2025 and April 2, 2024, there were approximately 0.9 million of common stock equivalents that have been excluded from the calculation of diluted net income per share because they are anti-dilutive.