Note 3 – Earnings per Common Share

Basic earnings per common share amounts are computed by dividing income available to common shareholders, after deducting preferred stock dividends, by the average number of common shares outstanding. Diluted earnings per common share amounts assume the issuance of common stock for all potentially dilutive equivalent securities outstanding.

The following is a reconciliation of basic and diluted earnings per common share for the respective periods:



	Quarter Ended				Nine Months Ended
	Fiscal December				Fiscal December
	2018		2017		2018		2017
	(Amounts in thousands,
	except per share data)
Numerator for earnings per common share calculation:
Net income	$	20,531	$	11,601	$	62,936	$	46,452
Less: Preferred stock dividends		(102)		(92)		(306)		(276)
Income available to common shareholders	$	20,429	$	11,509	$	62,630	$	46,176
Denominator for earnings per common share calculation:
Weighted average common shares, basic		33,032		32,779		32,932		32,746
Effect of dilutive securities:
Preferred stock		510		510		510		510
Stock options		195		52		134		57
Restricted stock		29		11		29		4
Weighted average number of common shares, diluted		33,766		33,352		33,605		33,317
Basic earnings per common share:	$	.62	$	.35	$	1.90	$	1.41
Diluted earnings per common share:	$	.61	$	.35	$	1.87	$	1.39

The computation of diluted earnings per common share excludes the effect of the assumed exercise of approximately 120,000 and 274,000 stock options for the quarter and nine months ended December 29, 2018, respectively, and 934,000 and 1,096,000 stock options for the quarter and nine months ended December 23, 2017, respectively. Such amounts were excluded as the exercise price of these stock options was greater than the average market value of our common stock for those periods, resulting in an anti-dilutive effect on diluted earnings per common share.