Earnings Per Share

6 Months Ended

Jul. 02, 2023

(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
	July 2, 2023	July 3, 2022	July 2, 2023	July 3, 2022
	(In thousands, except per share data)
Net (loss) income	$(282)	$8,934	$(89)	$18,037
Weighted-average shares of common stock outstanding:
Basic	21,762	21,675	21,696	21,677
Dilutive effect of common stock equivalents arising from share option and nonvested share awards	—	364	—	520
Diluted	21,762	22,039	21,696	22,197
Basic (loss) earnings per share	$(0.01)	$0.41	$(0.00)	$0.83
Diluted (loss) earnings per share	$(0.01)	$0.41	$(0.00)	$0.81
Antidilutive share option awards excluded from diluted calculation	20	14	20	12
Antidilutive nonvested share awards excluded from diluted calculation	298	403	327	—

The computation of diluted earnings per share for the 13 and 26 weeks ended July 2, 2023 excludes all potential share option awards since the Company reported a net loss, and the effect of their inclusion would have been antidilutive (i.e., including such share option awards would result in higher earnings per share). The computation of diluted earnings per share for the 13 and 26 weeks ended July 3, 2022 excludes certain share option awards that were outstanding and antidilutive since the exercise prices of these share option awards exceeded the average market price of the Company’s common shares.

The computation of diluted earnings per share for the 13 and 26 weeks ended July 2, 2023 excludes all potential nonvested share awards since the Company reported a net loss and the effect of their inclusion would have been antidilutive. The computation of diluted earnings per share for the 13 weeks ended July 3, 2022 excludes certain nonvested share awards that were outstanding and antidilutive since the grant date fair values of these nonvested share awards exceeded the average market price of the Company’s common shares. No nonvested share awards were antidilutive for the 26 weeks ended July 3, 2022.