Earnings Per Share and Stockholders' Equity

3 Months Ended

Mar. 29, 2025

Earnings Per Share and Stockholders' Equity

The Company calculates basic earnings per share by dividing net income for the period by the weighted average number of common shares outstanding for the period. For rounding purposes when calculating earnings per share, the Company’s policy is to round down to the whole cent.

Diluted earnings per share are calculated using the treasury stock method whereby net income for the period is divided by the weighted average number of common shares outstanding for the period plus the dilutive effect, if any, of shares of stock associated with unvested share-based grants. However, for performance-based share-based grants, the dilutive effect is included only for grants where the performance goals have been achieved.

The reconciliations of basic net income and diluted earnings per common share for the three fiscal months ended March 29, 2025 and March 30, 2024 are as follows:


	Three Fiscal Months Ended
	March 29, 2025		March 30, 2024

Net income (in thousands)	$	2,805	$	17,492

Weighted-average shares outstanding - Basic	8,256,551		8,653,290
Dilutive effect of share-based awards	71,903		88,263
Weighted-average shares outstanding - Diluted	8,328,454		8,741,553

Basic earnings per share	$	0.33	$	2.02
Diluted earnings per share	$	0.33	$	2.00

For the fiscal quarters ended March 29, 2025 and March 30, 2024, weighted-average unvested time-based restricted stock units (“RSUs”) totaling 24,089 and 486, respectively, were not included in the dilutive effect of share-based awards for the respective periods because their effects were antidilutive. The unvested time-based RSUs were antidilutive based on their remaining unearned compensation amounts and the Company’s average stock price during the respective period. Additionally, as of March 29, 2025 and March 30, 2024, a total of 127,174 and 113,208, respectively, of unvested performance-based RSUs were outstanding but not included in the computation of diluted earnings per share. The unvested performance-based RSUs were excluded because their performance metrics had not been achieved as of the end of the respective reporting period and thus they were not tested for dilution under the treasury stock method. Each RSU is composed of one unvested share of the Company’s common stock and any outstanding RSUs dilutive effect could change in future reporting periods.

Repurchases of Common Stock

On October 31, 2023, the Company’s board of directors authorized a share repurchase program for $100 million. Under this share repurchase program, the Company may repurchase its common stock from time to time, without prior notice, subject to prevailing market conditions and other considerations. Repurchases may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, accelerated share repurchase programs, tender offers or pursuant to a trading plan that may be adopted in accordance with the Securities and Exchange Commission Rule 10b5-1.

During the three fiscal months ended March 29, 2025, the Company repurchased 186,048 shares of its common stock at a weighted-average average price of $80.65 including broker commissions but excluding federal excise tax on the repurchases, for a total of $15.0 million. These amounts are based on trade date activity, while the amounts reported on the Company’s consolidated statements of cash flows for share repurchases are based on settlement date activity. As of March 29, 2025, there remained $31.5 million repurchase capacity under the authorization approved October 31, 2023.

Between March 29, 2025 and April 25, 2025, the Company purchased an additional 142,500 shares of its common stock for $10.3 million at a weighted-average share price of $72.18 per share, including broker commissions but excluding federal excise tax due on the repurchases.