NOTE 12 - EARNINGS PER SHARE

12 Months Ended

Jan. 31, 2016

NOTE 12 – EARNINGS PER SHARE

We refer you to the Earnings Per Share disclosure in Note 1-Summary of Significant Accounting Policies, above, for more detailed information concerning the calculation of earnings per share.

We have issued restricted stock awards to non-employee directors since 2006 and certain management employees since 2014 and have issued restricted stock units (RSUs) to certain senior executives since fiscal 2012, under the Company’s Stock Incentive Plan. We expect to continue to grant these types of awards annually in the future. The following table sets forth the number of outstanding restricted stock awards and RSUs, net of forfeitures and vested shares, as of the fiscal year-end dates indicated:

	January 31,		February 1,		February 2,
	2016		2015		2014

Restricted shares		24,919		27,458		28,614
Restricted stock units		12,840		24,546		32,353
		37,759		52,004		60,967

All restricted shares awarded that have not yet vested are considered when computing diluted earnings per share. Unlike the restricted stock grants issued to our non-employee directors, the transfer of ownership of common shares issued under our RSUs, if any, occurs after the three-year vesting period; however, RSUs are also considered when computing diluted earnings per share.

The following table sets forth the computation of basic and diluted earnings per share:

	Fifty-Two		Fifty-Two		Fifty-Two
	Weeks Ended		Weeks Ended		Weeks Ended
	January 31,		February 1,		February 2,
	2016		2015		2014

Net income	$	16,185	$	12,578	$	7,929
Less: Dividends on unvested restricted shares		11		11		12
Net earnings allocated to unvested restricted stock		40		33		22
Earnings available for common shareholders	$	16,134	$	12,534	$	7,895

Weighted average shares outstanding for basic earnings per share		10,779		10,736		10,722
Dilutive effect of unvested restricted stock awards		28		35		30
Weighted average shares outstanding for diluted earnings per share		10,807		10,771		10,752

Basic earnings per share	$	1.50	$	1.17	$	0.74

Diluted earnings per share	$	1.49	$	1.16	$	0.74

We completed the acquisition of substantially all of the assets of Home Meridian International subsequent to the end of our 2016 fiscal year on February 1, 2016. Upon completion, we issued 716,910 shares of our common stock to designees of Home Meridian as partial consideration for the acquisition.