Earnings per Common Share

6 Months Ended

Jun. 30, 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 based on the cumulative achievement against the performance targets only when the performance targets have been achieved 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				Six Months Ended
	June 30,		July 1,		June 30,		July 1,
	2023		2022		2023		2022
Numerators:
Consolidated net income	$	20,879	$	17,479	$	39,144	$	36,299

Denominators:
Weighted average common shares outstanding— basic		35,851		35,609		35,830		35,573
Dilutive potential common shares		181		324		185		284
Weighted average common shares outstanding— diluted		36,032		35,933		36,015		35,857
Antidilutive potential common shares excluded from above		141		146		127		120

Earnings per Common Share:
Basic	$	0.58	$	0.49	$	1.09	$	1.02
Diluted	$	0.58	$	0.49	$	1.09	$	1.01

For both the three and six months ended June 30, 2023, 148 thousand shares of performance-based restricted stock units were considered attainment-based contingently issuable shares that were excluded from the calculation of the denominator as the performance targets had not been achieved as of June 30, 2023.

For both the three and six months ended July 1, 2022, 125 thousand shares of performance-based restricted stock units were considered attainment-based contingently issuable shares that were excluded from the calculation of the denominator as the performance targets had not been achieved as of July 1, 2022.