Earnings Per Share

12 Months Ended

Jan. 03, 2017

Basic earnings per share (“EPS”) is calculated by dividing net income (loss) available to common shareholders by the weighted-average number of shares of common stock outstanding during each period. Diluted EPS is calculated using net income (loss) available to common stockholders divided by diluted weighted-average shares of common stock outstanding during each period. Potentially dilutive securities include shares of common stock underlying stock options and restricted common stock. Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect.

The following table sets forth the computations of basic and diluted EPS (in thousands, except share and per share data):



	2016			2015			2014
Net (loss) income	$	(71,677	)	$	(13,765	)	$	11,428
Shares:
Basic weighted average shares outstanding	27,808,708			28,938,901			29,717,304
Effect of dilutive securities	—			—			1,283,795
Diluted weighted average number of shares outstanding	27,808,708			28,938,901			31,001,099
(Loss) earnings per share:
Basic (loss) earnings per share	$	(2.58	)	$	(0.48	)	$	0.38
Diluted (loss) earnings per share	$	(2.58	)	$	(0.48	)	$	0.37

The Company computes the effect of dilutive securities using the treasury stock method and average market prices during the period. Potential common shares are excluded from the computation of diluted earnings (loss) per share when the effect would be anti-dilutive. All potential common shares are anti-dilutive in periods of net loss. The number of shares issuable on the exercise of share based awards excluded from the calculation of diluted earnings (loss) per share because the effect of their inclusion would have been anti-dilutive totaled 2,697,697; 3,184,949; and 247,427 for 2016, 2015 and 2014, respectively.