Earnings Per Share

6 Months Ended

Mar. 27, 2015

Earnings Per Share

NOTE 3 – EARNINGS PER SHARE

Weighted average basic shares outstanding for the three and six months ended March 27, 2015 were 22,050,000 and 21,910,000, respectively, and for the three and six months ended March 28, 2014 were 21,302,000 and 21,207,000, respectively. Diluted shares outstanding for the three and six months ended March 27, 2015 were 22,395,000 and 22,317,000, respectively, and for the three and six months ended March 28, 2014 were 21,458,000 and 21,424,000, respectively. The FASB Accounting Standards Codification^TM (“ASC”) Topic 260, “Earnings per Share,” requires that employee equity share options, nonvested shares and similar equity instruments granted by the Company be treated as potential common shares in computing diluted earnings per share. Diluted shares outstanding includes the dilutive effect of in-the-money options and nonvested shares, which is calculated based on the average closing share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount that the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits or deficiencies that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. For the three and six months ended March 27, 2015 the dilutive effect of nonvested stock awards was approximately 345,000 and 407,000, respectively. For the three and six months ended March 28, 2014 the dilutive effect of nonvested stock awards was approximately 156,000 and 217,000, respectively. There was no dilutive effect of in-the-money employee stock options for the three and six months ended March 27, 2015 or for the three and six months ended March 28, 2014. For the three and six months ended March 27, 2015, options and nonvested stock awards amounting to approximately 595,000 shares and 555,000 shares, respectively, were excluded from the calculation as their effect would have been anti-dilutive. For the three and six months ended March 28, 2014 options and nonvested stock awards amounting to approximately 678,000 shares and 815,000 shares, respectively, were excluded from the calculation as their effect would have been anti-dilutive.