Earnings Per Share

6 Months Ended

Jun. 26, 2022

Earnings Per ShareWe compute earnings per share using the two-class method. The two-class method requires an earnings allocation formula that determines earnings per share for common shareholders and participating security holders according to dividends declared and participating rights in undistributed earnings. The shares of the Company’s former Series B Convertible Preferred Stock ("Series B Preferred Stock"), all of which were repurchased by the Company or converted into shares of common stock during 2021, 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 participating securities and undistributed earnings allocated to participating securities, are subtracted from net income attributable to the Company in determining net income attributable to common shareholders. Additionally, any accretion to the redemption value for the Series B Preferred Stock was treated as a deemed dividend in the two-class earnings per share calculation.

The calculations of basic and diluted earnings per common share are as follows:


	Three Months Ended				Six Months Ended
	June 26, 2022		June 27, 2021		June 26, 2022		June 27, 2021
Basic earnings (loss) per common share (in thousands, except per share data)
Net income attributable to the Company	$	25,433	$	32,254	$	35,927	$	66,137
Dividends on redemption of Series B Convertible Preferred Stock	—		(109,852)		—		(109,852)
Dividends paid to participating securities	(82)		(2,300)		(141)		(5,827)
Net income attributable to participating securities	(111)		—		(93)		—
Net income (loss) attributable to common shareholders	$	25,240	$	(79,898)	$	35,693	$	(49,542)

Basic weighted average common shares outstanding	35,624		34,729		35,775		33,739
Basic earnings (loss) per common share	$	0.71	$	(2.30)	$	1.00	$	(1.47)

Diluted earnings (loss) per common share (in thousands, except per share data)
Net income (loss) attributable to common shareholders	$	25,240	$	(79,898)	$	35,693	$	(49,542)

Weighted average common shares outstanding	35,624		34,729		35,775		33,739
Dilutive effect of outstanding equity awards (a)	200		—		257		—
Diluted weighted average common shares outstanding	35,824		34,729		36,032		33,739
Diluted earnings (loss) per common share	$	0.70	$	(2.30)	$	0.99	$	(1.47)

_______________


(a)			Excludes 63 and 42 equity awards for the three and six months ended June 26, 2022, respectively, as the effect of including such awards would have been anti-dilutive (none for the three and six months ended June 27, 2021).