Earnings Per Share

12 Months Ended

Dec. 31, 2023

EARNINGS PER SHARE

The Company computes basic earnings per share (“EPS”) by dividing net income by the weighted average common shares outstanding, including participating securities outstanding, during the period as discussed 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.

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 shares outstanding for basic EPS as these awards are considered participating securities. Any unvested stock awards considered non-participating securities are included in 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
	2023		2022		2021
	(in thousands, except per share data)
Numerator:
Net income	$	44,517	$	19,560	$	55,234
Less: distributed and undistributed earnings available to participating securities	(569)		(323)		(602)
Distributed and undistributed earnings available to common shareholders	$	43,948	$	19,237	$	54,632

Denominator:
Weighted average shares outstanding	57,349		57,893		58,328
Participating securities	743		972		643
Shares for basic EPS	58,092		58,865		58,971
Dilutive effect of non-participating securities	243		—		—
Shares for diluted EPS	58,335		58,865		58,971

Basic EPS	$	0.77	$	0.33	$	0.94
Diluted EPS	$	0.76	$	0.33	$	0.94

For 2023, 657,391 non-participating securities that could potentially dilute basic EPS in the future, consisting of restricted share units and performance shares, were excluded from the computation of diluted EPS as these securities would have been antidilutive for the respective period.