Earnings per Common Share (Tables)

6 Months Ended

Jun. 28, 2019

Computation of Basic and Diluted Earnings per Common Share

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 28,		June 29,			June 28,		June 29,
	2019⁽¹⁾		2018⁽²⁾			2019⁽¹⁾		2018⁽²⁾
Numerators:
Consolidated net income	$	10,380	$	11,625		$	22,633	$	24,462
Less: Net income attributable to noncontrolling interest		—		(625	)		—		(1,551	)
Net income attributable to Novanta Inc.		10,380		11,000			22,633		22,911
Redeemable noncontrolling interest redemption value adjustment		—		303			—		(5,096	)
Net income attributable to Novanta Inc. after adjustment for redeemable noncontrolling interest redemption value	$	10,380	$	11,303		$	22,633	$	17,815

Denominators:
Weighted average common shares outstanding— basic		34,998		34,949			34,981		34,919
Dilutive potential common shares		505		525			510		532
Weighted average common shares outstanding— diluted		35,503		35,474			35,491		35,451
Antidilutive potential common shares excluded from above		36		—			47		6

Earnings per Common Share Attributable to Novanta Inc.:
Basic	$	0.30	$	0.32		$	0.65	$	0.51
Diluted	$	0.29	$	0.32		$	0.64	$	0.50

(1)

45,252 non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team and 213,219 shares of restricted stock issued to Laser Quantum former non-controlling interest holders are considered contingently issuable shares and are excluded from the calculation of the denominator as the contingent conditions had not been met as of June 28, 2019.

(2)

53,968 non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team were considered contingently issuable shares and were excluded from the calculation of the denominator as the contingent conditions had not been met as of June 29, 2018.