Net (Loss)/Income Per Share

9 Months Ended

Sep. 27, 2022

Net (Loss)/Income Per Share

Net (Loss)/Income Per Share

11.  Net (Loss)/Income Per Share

Basic net (loss)/income per share is computed by dividing net (loss)/income available to common stockholders by the weighted-average number of common shares outstanding during the period, reduced by unvested restricted stock awards. At September 27, 2022 and September 28, 2021, 2.4 million and 2.1 million shares, respectively, of restricted stock issued were unvested and, therefore, excluded from the calculation of basic earnings per share for the fiscal periods ended on those dates.

Diluted net (loss)/income per share is computed by dividing net (loss)/income available to common stockholders by the weighted-average number of common stock equivalents outstanding for the period. Common stock equivalents for the Notes are determined by application of the if-converted method, and common stock equivalents for outstanding stock options, restricted stock and restricted stock units are determined by the application of the treasury stock method.

Holders of our Series A Convertible Preferred Stock, par value $0.01 per share (the “Series A preferred stock”) participated in dividends on an as-converted basis when declared on common stock. As a result, our Series A preferred stock met the definition of a participating security which required us to apply the two-class method to compute both basic and diluted net (loss)/income per share. The two-class method is an earnings allocation formula that treats participating securities as having rights to earnings that would otherwise have been available to common stockholders. In addition, as our Series A preferred stock was a participating security, we were required to calculate diluted net (loss)/income per share under the if-converted method in addition to the two-class method and utilize the most dilutive result.

	Thirteen		Thirteen		Thirty-Nine		Thirty-Nine
	Weeks Ended		Weeks Ended		Weeks Ended		Weeks Ended
	September 27, 2022		September 28, 2021		September 27, 2022		September 28, 2021
	(In thousands, except per share data)
Basic net (loss)/income per common share:
Net (loss)/income	$	(2,398)	$	32,680	$	46,421	$	70,263
Dividends on Series A preferred stock		—		—		—		(18,661)
Undistributed earnings allocated to Series A preferred stock		—		—		—		(5,804)
Net (loss)/income available to common stockholders		(2,398)		32,680		46,421		45,798
Basic weighted-average shares outstanding		49,653		50,212		50,124		46,624
Basic net (loss)/income per common share	$	(0.05)	$	0.65	$	0.93	$	0.98
Diluted net (loss)/income per common share:
Net (loss)/income available to common stockholders		(2,398)		32,680		46,421		45,798
Reallocation of undistributed earnings to Series A preferred stock		—		—		—		114
Net (loss)/income available to common stockholders for diluted earnings per share		(2,398)		32,680		46,421		45,912
Basic weighted-average shares outstanding		49,653		50,212		50,124		46,624
Dilutive effect of equity awards (1)		—		901		584		1,051
Diluted weighted-average shares outstanding		49,653		51,113		50,708		47,675
Diluted net (loss)/income per common share	$	(0.05)	$	0.64	$	0.92	$	0.96

(1) Shares of common stock equivalents related to outstanding stock options, restricted stock and restricted stock units of 3.3 million and 3.8 million as of September 27, 2022 and September 28, 2021, respectively, were excluded from the diluted calculation due to their anti-dilutive effect. No shares of common stock equivalents related to the Notes were included in the diluted calculation due to their anti-dilutive effect.