Earnings Per Share

12 Months Ended

Jan. 01, 2023

EARNINGS PER SHARE

The Company calculates basic and diluted earnings per common share using the two-class method. Basic earnings (loss) per share (“EPS”) is calculated by dividing net income (loss) by the weighted average common shares outstanding, including participating securities outstanding, during the period as depicted below. Diluted EPS reflects the potential dilution beyond shares for basic EPS that could occur if securities or other contracts to issue common stock were exercised, converted into common stock or resulted in the issuance of common stock that would have shared in the Company’s earnings. Income attributable to non-controlling interest is included in the computation of basic and diluted earnings per share, where applicable.

The Company includes all unvested stock awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of common shares outstanding in the basic and diluted EPS calculations when the inclusion of these shares would be dilutive. Unvested share-based awards of restricted stock are paid dividends equally with all other shares of common stock. As a result, the Company includes all outstanding restricted stock awards in the calculation of basic and diluted EPS. Distributed earnings include common stock dividends and dividends earned on unvested share-based payment awards. Undistributed earnings represent earnings that were available for distribution but were not distributed.

The following table shows the computation of basic and diluted EPS:


	Fiscal Year
	2022		2021		2020
	(in thousands, except per share data)
Numerator:
Net income (loss)	$	19,560	$	55,234	$	(71,929)
Less: distributed and undistributed earnings available to participating securities	(323)		(602)		(42)
Distributed and undistributed earnings (loss) available to common shareholders	$	19,237	$	54,632	$	(71,971)

Denominator:
Weighted average shares outstanding	57,893		58,328		58,110
Participating securities	972		643		437
Shares for basic EPS	58,865		58,971		58,547

Shares for diluted EPS	58,865		58,971		58,547

Basic EPS	$	0.33	$	0.94	$	(1.23)
Diluted EPS	$	0.33	$	0.94	$	(1.23)