12. Earnings Per Share

9 Months Ended

Oct. 30, 2016

12. Earnings Per Share

We refer you to the discussion of Earnings Per Share in Note 1-Summary of Significant Accounting Policies, in the financial statements included in our 2016 Annual Report, for additional information concerning the calculation of earnings per share.

We have issued restricted stock awards to non-employee members of the board of directors since 2006 and restricted stock units (RSUs) to certain senior executives since fiscal 2012 under the Company’s Stock Incentive Plan. Each RSU entitles an executive to receive one share of the Company’s common stock if the executive remains continuously employed with the Company through the end of a three-year service period. The RSUs may be paid in shares of our common stock, cash or both at the discretion of the Compensation Committee of our board of directors. We expect to continue to grant these types of awards annually in the future. The following table sets forth the number of outstanding restricted stock awards and RSUs, net of forfeitures and vested shares, as of the fiscal period-end dates indicated:

	October 30,		January 31,
	2016		2016

Restricted shares		26		25
Restricted stock units		20		13
		46		38

All restricted shares and RSUs awarded that have not yet vested are considered when computing diluted earnings per share. The following table sets forth the computation of basic and diluted earnings per share:

	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	October 30,		November 1,		October 30,		November 1,
	2016		2015		2016		2015

Net income	$	6,459	$	4,630	$	14,308	$	12,040
Less: Unvested participating restricted stock dividends		3		2		8		8
Net earnings allocated to unvested participating restricted stock		14		11		32		30
Earnings available for common shareholders		6,442		4,617		14,268		12,002

Weighted average shares outstanding for basic earnings per share		11,537		10,787		11,528		10,775
Dilutive effect of unvested restricted stock and RSU awards		22		22		28		27
Weighted average shares outstanding for diluted earnings per share		11,559		10,809		11,556		10,802

Basic earnings per share	$	0.56	$	0.43	$	1.24	$	1.11

Diluted earnings per share	$	0.56	$	0.43	$	1.23	$	1.11

The increase in the number of shares is primarily due to the issuance of 716,910 shares of our common stock as a result of the Home Meridian acquisition on February 1, 2016.