NET INCOME PER SHARE

9 Months Ended

Jul. 02, 2021

NET INCOME PER SHARE

NET INCOME PER SHARE

NOTE 13—NET INCOME PER SHARE

The Company applies the two-class method to calculate and present net income per share. Certain of the Company’s restricted (non-vested) share awards contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing net income per share pursuant to the two-class method. Under the two-class method, net earnings are reduced by the amount of dividends declared (whether paid or unpaid) and the remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends.

Basic earnings per common share are calculated by dividing income available to common stockholders by the weighted average number of shares outstanding during each period. Diluted earnings per common share add to the denominator incremental shares resulting from the assumed exercise of all potentially dilutive stock options, as well as unvested restricted stock and restricted stock units. Options, restricted stock and restricted stock units are primarily held by directors, officers and certain employees.

The Company uses the two-class method to calculate net income per share as both classes share the same rights in dividends. Therefore, basic and diluted earnings per share (“EPS”) are the same for both classes of ordinary shares.

A summary of shares used in the EPS calculations follows:

	Three Months Ended				Nine Months Ended
	July 2,		June 26,		July 2,		June 26,
Net Income Per Share	2021		2020		2021		2020
(in thousands, except share and per share data)
Basic net income per share:
Net income	$	1,026	$	2,114	$	2,215	$	4,826
Less: Income attributable to non-vested shares		4		10		9		23
Net income available to common stockholders	$	1,022	$	2,104	$	2,206	$	4,803
Weighted average common shares outstanding		10,616,613		10,424,056		10,574,713		10,388,872
Basic income per share	$	0.10	$	0.20	$	0.21	$	0.46
Diluted net income per share:
Net income	$	1,026	$	2,114	$	2,215	$	4,826
Shares used in computing basic net income per share		10,616,613		10,424,056		10,574,713		10,388,872
Dilutive effect of options and non-vested shares		432,055		334,036		457,532		308,416
Shares used in computing diluted net income per share		11,048,668		10,758,092		11,032,245		10,697,288
Diluted net income per share	$	0.09	$	0.20	$	0.20	$	0.45

The diluted weighted average share calculations do not include the following shares, which are anti-dilutive to the EPS calculations.

	Three Months Ended				Nine Months Ended
	July 2,		June 26,		July 2,		June 26,
	2021		2020		2021		2020
Anti-dilutive shares excluded		11,825		—		11,825		—