Earnings Per Share

6 Months Ended

Jun. 28, 2015

(8) Earnings Per Share

The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share, which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share is calculated by dividing net income by the weighted-average shares of common stock outstanding, reduced by shares repurchased and held in treasury, during the period. Diluted earnings per share represents basic earnings per share adjusted to include the potentially dilutive effect of outstanding share option awards, nonvested share awards and nonvested share unit awards.

The following table sets forth the computation of basic and diluted earnings per common share:


	13 Weeks Ended				26 Weeks Ended
	June 28, 2015		June 29, 2014		June 28, 2015		June 29, 2014
	(In thousands, except per share data)

Net income	$	2,578	$	2,535	$	4,892	$	4,595

Weighted-average shares of common stock outstanding:
Basic		21,835		21,985		21,822		21,982
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards		130		128		190		216

Diluted		21,965		22,113		22,012		22,198

Basic earnings per share	$	0.12	$	0.12	$	0.22	$	0.21

Diluted earnings per share	$	0.12	$	0.11	$	0.22	$	0.21

The computation of diluted earnings per share for the 13 weeks ended June 28, 2015, the 26 weeks ended June 28, 2015, the 13 weeks ended June 29, 2014 and the 26 weeks ended June 29, 2014 does not include share option awards in the amounts of 467,947, 468,233, 505,800 and 548,679, respectively, that were outstanding and antidilutive (i.e., including such share option awards would result in higher earnings per share), since the exercise prices of these share option awards exceeded the average market price of the Company’s common shares.

Additionally, the computation of diluted earnings per share for the 13 weeks ended June 28, 2015, the 26 weeks ended June 28, 2015, the 13 weeks ended June 29, 2014 and the 26 weeks ended June 29, 2014 does not include nonvested share awards and nonvested share unit awards in the amounts of 110,037, 2,354, 231,538 and 142 shares, respectively, that were outstanding and antidilutive, since the grant date fair values of these nonvested share awards and nonvested share unit awards exceeded the average market price of the Company’s common shares.