Earnings Per Share

6 Months Ended

Aug. 03, 2013

Earnings Per Share

4. Earnings Per Share

The following table provides a reconciliation of the number of shares outstanding for basic and diluted earnings per share:

	For the three months ended				For the six months ended
(in thousands)	August 3, 2013		July 28, 2012		August 3, 2013		July 28, 2012
Common Stock Outstanding
Basic weighted average common shares outstanding		48,479		47,944		48,385		47,804
Common stock equivalents – stock options and restricted stock. Common stock equivalents of 231 shares and 273 shares for the three and six months ended August 3, 2013, respectively, were excluded due to the net loss		—		338		—		438
Diluted weighted average common shares outstanding		48,479		48,282		48,385		48,242

The following potential common stock equivalents were excluded from the computation of diluted earnings per share in each period because the exercise price of such options was greater than the average market price per share of common stock, adjusted for any unearned compensation for the respective periods, if applicable.

	For the three months ended				For the six months ended
(in thousands, except exercise prices)	August 3, 2013		July 28, 2012		August 3, 2013		July 28, 2012
Stock Options (time-vested)		2,077		1,702		2,323		1,702
Restricted Stock (time-vested)		1,115		—		1,115		—
Range of exercise prices of such stock options	$	4.96-$10.26	$	3.76-$10.26	$	4.96-$10.26	$	3.76-$10.76

The above options, which were outstanding at August 3, 2013, expire from October 27, 2013 to June 28, 2023.

Excluded from the Company’s computation of basic and diluted earnings per share for the quarter and first six months of fiscal 2013, were 1,114,682 shares of unvested performance-based restricted stock and 1,368,272 performance-based stock options. These performance-based awards will be included in the computation of basic and diluted earnings per share if, and when, the respective performance targets are achieved. In addition, 1,114,682 shares of unvested time-based restricted stock are excluded from the computation of basic earnings per share until such shares vest. See Note 3, Stock-Based Compensation, for a discussion of the Company’s 2013-2016 LTIP and the respective performance targets.

Although the shares of performance-based and time-based restricted stock are not considered outstanding or common stock equivalents for earnings per share purposes until certain vesting and performance thresholds are achieved, all 2,229,364 shares of restricted stock are considered issued and outstanding. Each share of restricted stock has all of the rights of a holder of the Company’s common stock, including but not limited to the right to vote and the right to receive dividends, which are forfeitable if the restricted stock is forfeited.