Earnings Per Share

6 Months Ended

Jun. 28, 2020

(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. During periods of net loss, diluted loss per share is equal to basic loss per share because the antidilutive effect of potential common shares is disregarded.

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

	13 Weeks Ended				26 Weeks Ended
	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
	(In thousands, except per share data)
Net income	$	11,136	$	28	$	6,525	$	1,692
Weighted-average shares of common stock outstanding:
Basic		21,252		21,118		21,200		21,074
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards		106		25		156		26
Diluted		21,358		21,143		21,356		21,100
Basic earnings per share	$	0.52	$	0.00	$	0.31	$	0.08
Diluted earnings per share	$	0.52	$	0.00	$	0.31	$	0.08
Antidilutive share option awards excluded from diluted calculation		778		542		694		482
Antidilutive nonvested share and nonvested share unit awards excluded from diluted calculation		315		489		359		448

The computation of diluted earnings per share for all periods presented excludes all potential share option awards since the exercise prices of all share option awards exceeded the average market price of the Company’s common shares, and the effect of their inclusion would have been antidilutive (i.e., including such share option awards would result in higher earnings per share). Additionally, the computation of diluted earnings per share for all periods presented excludes certain nonvested share awards and nonvested share unit awards 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.