Earnings per Common Share

3 Months Ended

Mar. 31, 2023

4. Earnings per Common Share

Basic earnings per common share is computed by dividing consolidated net income by the weighted average number of common shares outstanding during the period.

For diluted earnings per common share, the denominator includes the dilutive effect of outstanding common share equivalents. The dilutive effects of outstanding common share equivalents, including outstanding service-based restricted stock units, stock options and performance-based restricted stock units, are determined using the treasury stock method. The dilutive effects of market-based contingently issuable shares are included in the weighted average common share calculation based on the number of shares, if any, that would be issuable as of the end of the reporting period, assuming the end of the reporting period is also the end of the performance period. The dilutive effects of attainment-based contingently issuable shares are included in the weighted average common share calculation only when the performance targets have been achieved based on the cumulative achievement against the performance targets as of the end of the reporting period.

The following table sets forth the computation of basic and diluted earnings per common share (amounts in thousands, except per share data):


	Three Months Ended
	March 31,		April 1,
	2023		2022
Numerators:
Consolidated net income	$	18,265	$	18,820

Denominators:
Weighted average common shares outstanding— basic		35,810		35,538
Dilutive potential common shares		189		243
Weighted average common shares outstanding— diluted		35,999		35,781
Antidilutive potential common shares excluded from above		113		93

Earnings per Common Share:
Basic	$	0.51	$	0.53
Diluted	$	0.51	$	0.53

For the three months ended March 31, 2023, 151 thousand shares of performance based restricted stock units were considered attainment-based contingently issuable shares and were excluded from the calculation of the denominator as the contingent conditions had not been met as of March 31, 2023.

For the three months ended April 1, 2022, 128 thousand shares of performance based restricted stock units and 213 thousand shares of restricted stock issued to the former Laser Quantum non-controlling interest shareholders were considered attainment-based contingently issuable shares and were excluded from the calculation of the denominator as the contingent conditions had not been met as of April 1, 2022.