Note 3 – Earnings per Common Share

Basic earnings per common share amounts are computed by dividing income available to common shareholders, after deducting preferred stock dividends, by the average number of common shares outstanding. Diluted earnings per common share amounts assume the issuance of common stock for all potentially dilutive equivalent securities outstanding.

The following is a reconciliation of basic and diluted earnings per common share for the respective periods:



	Quarter Ended				Nine Months Ended
	Fiscal December				Fiscal December
	2017		2016		2017		2016
	(Amounts in thousands,
	except per share data)
Numerator for earnings per common share calculation:
Net income	$	11,601	$	17,566	$	46,452	$	51,865
Preferred stock dividends		(92)		(102)		(276)		(361)
Income available to common shareholders	$	11,509	$	17,464	$	46,176	$	51,504
Denominator for earnings per common share calculation:
Weighted average common shares, basic		32,779		32,466		32,746		32,338
Effect of dilutive securities:
Preferred stock		510		635		510		718
Stock options		52		191		57		250
Restricted stock		11		—		4		—
Weighted average number of common shares, diluted		33,352		33,292		33,317		33,306
Basic earnings per common share:	$	.35	$	.54	$	1.41	$	1.59
Diluted earnings per common share:	$	.35	$	.53	$	1.39	$	1.56

The computation of diluted earnings per common share excludes the effect of the assumed exercise of approximately 934,000 and 1,096,000 stock options for the three and nine months ended fiscal December 23, 2017, respectively, and 242,000 and 241,000 for the three and nine months ended December 24, 2016, respectively. Such amounts were excluded as the exercise prices of these stock options were greater than the average market value of our common stock for those periods, resulting in an anti-dilutive effect on diluted earnings per common share.