Earnings Per Common Share

3 Months Ended

Jun. 27, 2020

Earnings Per Common Share [Abstract]

NOTE 4 – 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 weighted average number of shares of common stock outstanding. Diluted earnings per common share amounts are calculated by dividing net income by the weighted average number of shares of common stock and common stock equivalents outstanding. Common stock equivalents represent shares issuable upon the assumed exercise of common stock options outstanding.

A reconciliation of basic and diluted earnings per common share for the quarters ended June is as follows:



	Quarter Ended
	June 27,		June 29,
	2020		2019
	(Amounts in thousands,
	except per share data)
Numerator for earnings per common share calculation:
Net income	$	2,987	$	22,606
Less: Preferred stock dividends		(112)		(112)
Income available to common shareholders	$	2,875	$	22,494
Denominator for earnings per common share calculation:
Weighted average common shares, basic		33,285		33,183
Effect of dilutive securities:
Preferred stock		510		510
Stock options		31		231
Restricted stock		28		40
Weighted average common shares, diluted		33,854		33,964
Basic earnings per common share:	$	0.09	$	0.68
Diluted earnings per common share:	$	0.09	$	0.67

The computation of diluted earnings per common share excludes the effect of the assumed exercise of approximately 585,000 and 59,000 stock options for the quarters ended June 27, 2020 and June 29, 2019, 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.