Earnings Per Share

9 Months Ended

Oct. 03, 2021

(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				39 Weeks Ended
	October 3, 2021		September 27, 2020		October 3, 2021		September 27, 2020
	(In thousands, except per share data)
Net income	$	24,131	$	28,393	$	82,480	$	34,918
Weighted-average shares of common stock outstanding:
Basic		21,798		21,310		21,654		21,237
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards		736		415		871		227
Diluted		22,534		21,725		22,525		21,464
Basic earnings per share	$	1.11	$	1.33	$	3.81	$	1.64
Diluted earnings per share	$	1.07	$	1.31	$	3.66	$	1.63
Antidilutive share option awards excluded from diluted calculation		—		268		—		700
Antidilutive nonvested share and nonvested share unit awards excluded from diluted calculation		—		120		7		144

No share option awards were antidilutive (i.e., including such share option awards would result in higher earnings per share) for the 13 and 39 weeks ended October 3, 2021. The computation of diluted earnings per share for the 13 and 39 weeks ended September 27, 2020 excludes certain potential share option awards since the exercise prices of these share option awards exceeded the average market price of the Company’s common shares, and the effect of their inclusion would have been antidilutive.

No nonvested share awards or nonvested share unit awards were antidilutive for the 13 weeks ended October 3, 2021. The computation of diluted earnings per share for the 39 weeks ended October 3, 2021 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. The computation of diluted earnings per share for the 13 and 39 weeks ended September 27, 2020 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.