Earnings per Common Share

9 Months Ended

Oct. 02, 2020

5. 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. For the three and nine months ended October 2, 2020 and September 27, 2019, respectively, weighted average shares outstanding for the diluted earnings per common share included the dilutive effect of outstanding restricted stock units, stock options, and total shareholder return performance-based restricted stock units, 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. Dilutive effects of attainment-based contingently issuable shares granted to the former Laser Quantum Limited (“Laser Quantum”) noncontrolling interest shareholders, as well as the non-GAAP EPS performance-based restricted stock units are included in the weighted average common share calculation when the performance targets have been achieved based on the cumulative achievement against the performance targets as of the end of each 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				Nine Months Ended
	October 2,		September 27,		October 2,		September 27,
	2020⁽¹⁾		2019⁽²⁾		2020⁽¹⁾		2019⁽²⁾
Numerators:
Consolidated net income	$	8,258	$	8,923	$	31,865	$	31,556

Denominators:
Weighted average common shares outstanding— basic		35,142		35,074		35,144		35,012
Dilutive potential common shares		546		511		465		511
Weighted average common shares outstanding— diluted		35,688		35,585		35,609		35,523
Antidilutive potential common shares excluded from above		—		35		17		43

Earnings per Common Share:
Basic	$	0.23	$	0.25	$	0.91	$	0.90
Diluted	$	0.23	$	0.25	$	0.89	$	0.89

⁽¹⁾

73 thousand non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team and 213 thousand shares of restricted stock issued to the former Laser Quantum non-controlling interest shareholders are considered contingently issuable shares and were excluded from the calculation of the denominator as the contingent conditions had not been met as of October 2, 2020.

⁽²⁾

47 thousand non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team and 213 thousand shares of restricted stock issued to the former Laser Quantum non-controlling interest shareholders were considered contingently issuable shares and were excluded from the calculation of the denominator as the contingent conditions had not been met as of September 27, 2019.