Earnings per Share

7 Months Ended

May 03, 2014

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
(in thousands)	May 3, 2014		May 4, 2013
Common Stock Outstanding
Basic weighted average common shares outstanding		48,656		48,291
Common stock equivalents – stock options and restricted stock. Common stock equivalents of 565 shares for the three months ended May 3, 2014, were excluded due to the net loss		—		296
Diluted weighted average common shares outstanding		48,656		48,587

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 for the respective periods.

	For the three months ended
(in thousands, except exercise prices)	May 3, 2014	May 4, 2013
Stock Options (time-vested)	1,948	1,167
Range of exercise prices of such options	$4.96 - $7.52	$4.91 - $10.26

The above options, which were outstanding at May 3, 2014, expire from May 24, 2014 to January 29, 2024.

Excluded from the Company’s computation of basic and diluted earnings per share for the first three months of fiscal 2014, were 901,715 shares of unvested performance-based restricted stock and 1,117,547 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, another 901,715 shares of unvested time-based restricted stock were 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 issued in connection with the 2013-2016 LTIP are not considered outstanding or common stock equivalents for earnings per share purposes until certain vesting and performance thresholds are achieved, all 1,803,430 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 rights are forfeited if the restricted stock is forfeited.