Earnings (Loss) Per Share

9 Months Ended

Sep. 29, 2019

Earnings (Loss) Per Share

Earnings (Loss) Per Share

9. Earnings (Loss) Per Share

We compute earnings (loss) per share using the two-class method. The two-class method requires an earnings allocation formula that determines earnings (loss) per share for common stockholders and participating security holders according to dividends declared and participating rights in undistributed earnings. The Series B Preferred Stock and time-based restricted stock awards are participating securities because holders of such shares have non-forfeitable dividend rights and participate in undistributed earnings with common stock. Under the two-class method, total dividends provided to the holders of Series B Preferred Stock, including common dividends and undistributed earnings allocated to participating securities are subtracted from net income attributable to the Company in determining net income attributable to common stockholders. Additionally, any accretion to redemption value is treated as a deemed dividend in the two-class EPS calculation.

The calculations of basic and diluted (loss) earnings per common share are as follows (in thousands, except per-share data):

	Three Months Ended				Nine Months Ended
	September 29,		September 30,		September 29,		September 30,
	2019		2018		2019		2018
Basic (loss) earnings per common share:
Net income (loss) attributable to the Company	$	385	$	(13,300)	$	7,008	$	15,342
Preferred stock dividends and accretion		(3,473)		—		(9,029)		—
Net income attributable to participating securities		—		—		—		(147)
Net (loss) income attributable to common shareholders	$	(3,088)	$	(13,300)	$	(2,021)	$	15,195
Basic weighted average common shares outstanding		31,601		31,573		31,581		32,265
Basic (loss) earnings per common share	$	(0.10)	$	(0.42)	$	(0.06)	$	0.47
Diluted (loss) earnings per common share:
Net (loss) income attributable to common shareholders	$	(3,088)	$	(13,300)	$	(2,021)	$	15,195
Weighted average common shares outstanding		31,601		31,573		31,581		32,265
Dilutive effect of outstanding equity awards (a)		—		—		—		224
Diluted weighted average common shares outstanding (b)		31,601		31,573		31,581		32,489
Diluted (loss) earnings per common share	$	(0.10)	$	(0.42)	$	(0.06)	$	0.47

(a) Excludes 1,209 equity awards for the nine months ended September 30, 2018 as the effect of including such awards would have been anti-dilutive.

(b) The Company had 252,530 shares of Series B Preferred Stock outstanding as of September 29, 2019. For the fully diluted calculation, the Series B Preferred stock dividends were added back to net income attributable to common stockholders. The Company then applied the if-converted method to calculate dilution on the Series B Preferred Stock, which resulted in 5.0 million additional common shares. This calculation was anti-dilutive.