(2) Net Income Per Common Share Basic net income per common share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the reporting period. Diluted EPS equals net income divided by the sum of the weighted average number of shares of common stock outstanding plus all additional common stock equivalents, such as stock options, when dilutive. Following is a reconciliation of basic and diluted net income per common share: | | Three Months Ended | | Six Months Ended | | (in thousands, except per share data) | July 3, | | June 28, | | July 3, | | June 28, | | | 2016 | | 2015 | | 2016 | | 2015 | | Net income per common share – basic: | | | | | | | | | | | | | Net income from continuing operations, net of taxes | $ | 113 | | $ | 547 | | $ | 262 | | $ | 656 | | Net income from discontinued operations, net of taxes | | 27 | | | 107 | | | 708 | | | 195 | | Net income | $ | 140 | | $ | 654 | | $ | 970 | | $ | 851 | | Weighted average shares outstanding | | 6,949 | | | 6,974 | | | 6,949 | | | 7,016 | | Net income from continuing operations per common share – basic | $ | 0.02 | | $ | 0.07 | | $ | 0.04 | | $ | 0.09 | | Net income from discontinued operations per common share – basic | $ | --- | | $ | 0.02 | | $ | 0.10 | | $ | 0.03 | | Net income per common share – basic | $ | 0.02 | | $ | 0.09 | | $ | 0.14 | | $ | 0.12 | | | | | | | | | | | | | | | Net income per common share – diluted: | | | | | | | | | | | | | Net income from continuing operations, net of taxes | $ | 113 | | $ | 547 | | $ | 262 | | $ | 656 | | Net income from discontinued operations, net of taxes | | 27 | | | 107 | | | 708 | | | 195 | | Net income | $ | 140 | | $ | 654 | | $ | 970 | | $ | 851 | | Weighted average shares outstanding | | 6,949 | | | 6,974 | | | 6,949 | | | 7,016 | | Dilutive impact of common stock equivalents outstanding | | 9 | | | 19 | | | 9 | | | 21 | | Adjusted weighted average shares outstanding | | 6,958 | | | 6,993 | | | 6,958 | | | 7,037 | | Net income from continuing operations per common share – diluted | $ | 0.02 | | $ | 0.07 | | $ | 0.04 | | $ | 0.09 | | Net income from discontinued operations per common share – diluted | $ | --- | | $ | 0.02 | | $ | 0.10 | | $ | 0.03 | | Net income per common share – diluted | $ | 0.02 | | $ | 0.09 | | $ | 0.14 | | $ | 0.12 |
There were 659,000 options outstanding as of July 3, 2016 that were not included in the computation of diluted EPS for the three and six months ended July 3, 2016 because they were anti-dilutive. All options outstanding as of June 28, 2015 were included in the computation of diluted earnings per share for the three and six months ended June 28, 2015. |