Earnings Per Share

9 Months Ended

Sep. 29, 2024

(9)

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
	September 29, 2024			October 1, 2023		September 29, 2024			October 1, 2023
	(In thousands, except per share data)
Net (loss) income	$	(29,901	)	$	1,858	$	(48,191	)	$	1,769
Weighted-average shares of common stock outstanding:
Basic		22,000			21,801		21,929			21,731
Dilutive effect of common stock equivalents arising from share option and nonvested share awards		—			244		—			272
Diluted		22,000			22,045		21,929			22,003
Basic (loss) earnings per share	$	(1.36	)	$	0.09	$	(2.20	)	$	0.08
Diluted (loss) earnings per share	$	(1.36	)	$	0.08	$	(2.20	)	$	0.08
Antidilutive share option awards excluded from diluted calculation		512			20		371			20
Antidilutive nonvested share awards excluded from diluted calculation		705			276		436			310

The computation of diluted earnings per share for the third quarter and first nine months of fiscal 2024 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 third quarter and first nine months of fiscal 2023 excludes certain 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.

The computation of diluted earnings per share for the third quarter and first nine months of fiscal 2024 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 third quarter and first nine months of fiscal 2023 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.