Earnings per Share

3 Months Ended

Apr. 30, 2016

5. 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
	April 30, 2016		May 2, 2015
(in thousands)
Common Stock Outstanding:
Basic weighted average common shares outstanding		49,513		49,019
Common stock equivalents – stock options and restricted stock ⁽¹⁾		367		—
Diluted weighted average common shares outstanding		49,880		49,019

(1)

Common Stock equivalents of 483 shares for the three months ended May 2, 2015 were excluded due to a net loss.

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 or because of the unearned compensation associated with either the stock options or restricted stock units had an anti-dilutive effect.

	For the three months ended
	April 30, 2016		May 2, 2015
(in thousands, except exercise prices)
Stock Options (time-vested)		1,244		1,467
Restricted Stock Units (time-vested)		423		—
Range of exercise prices of such options	$4.91 - $7.52		$4.91 - $7.52

The above options, which were outstanding at April 30, 2016, expire from October 22, 2017 to November 2, 2025.

Excluded from the Company’s computation of basic and diluted earnings per share for first three months of fiscal 2016 were 941,082 shares of unvested performance-based restricted stock and 1,181,168 performance-based stock options. For the first three months of fiscal 2015, 933,486 shares of unvested performance-based restricted stock and 1,162,047 performance-based stock options were excluded from the Company’s computation of basic and diluted earnings per share for both periods. 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, shares of unvested time-based restricted stock of 377,395 and 766,837 were excluded from the computation of basic earnings per share for the first three months of fiscal 2016 and fiscal 2015, respectively, and will continue to be excluded until such shares vest. See Note 3, Long-Term Incentive Plans, 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 1,318,477 shares of restricted stock outstanding at April 30, 2016 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.