Earnings (Loss) Per Share

12 Months Ended

Jan. 01, 2023

The Company computes basic earnings (loss) per share (“EPS”) by dividing Net income (loss) attributable to common shares by the weighted average number of common shares outstanding for the period. The Company includes vested DSUs and PSUs that have not been settled in common shares in the basic weighted average number of common shares calculation. The Company’s computation of diluted EPS reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock, which include in-the-money outstanding stock options and RSUs. PSUs are excluded from the calculation of dilutive potential common shares until the performance conditions have been achieved on the basis of the assumption that the end of the reporting period was the end of the contingency period, if such shares issuable are dilutive. Using the treasury stock method, the effect of dilutive securities includes the additional shares of common stock that would have been outstanding based on the assumption that these potentially dilutive securities had been issued. The treasury stock method assumes proceeds from the exercise price of stock options and the unamortized compensation expense of RSUs and stock options are used to repurchase common shares at the average market price during the period, thus reducing the dilutive effect. RSUs and stock options with assumed proceeds per unit above the Company’s average share price for the periods presented are excluded from the diluted EPS calculation because the effect is anti-dilutive.

The following table sets forth the computation of the weighted average number of diluted common shares outstanding for the years ended January 1, 2023, January 2, 2022, and January 3, 2021:


	For the year January 3, 2022 to January 1, 2023	For the year January 4, 2021 to January 2, 2022	For the year December 30, 2019 to January 3, 2021
Shares used in the computation of basic earnings per share	45,048,218	44,578,649	42,858,691
Effect of dilutive securities:
Stock options	619,508	1,066,589	1,153,367
RSUs and PSUs	99,013	156,074	73,321
DSUs	14,097	4,061	8,122
Shares used in the computation of diluted earnings per share	45,780,836	45,805,373	44,093,501

The diluted earnings per common share calculation for the years ended January 1, 2023, January 2, 2022, and January 3, 2021 excluded the effect of 262,510, 4,690, and 5,730 potential shares of common stock, respectively, because the assumed exercises of a portion of the Company’s employee stock options and RSUs were anti-dilutive.