Earnings per Share

9 Months Ended

Sep. 24, 2023

7. Earnings per Share

We 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. 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.

Basic earnings per common share are computed by dividing net income attributable to common shareholders by the weighted-average common shares outstanding. Diluted earnings per common share are computed by dividing the net income attributable to common shareholders by the diluted weighted average common shares outstanding. Diluted weighted average common shares outstanding consist of basic weighted average common shares outstanding plus weighted average awards outstanding under our equity compensation plans, which are dilutive securities.

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


	Three Months Ended				Nine Months Ended
	September 24, 2023		September 25, 2022		September 24, 2023		September 25, 2022
Basic earnings per common share
Net income attributable to the Company	$	15,861	$	8,331	$	56,005	$	44,258
Dividends paid to participating securities	—		(86)		—		(228)
Net income attributable to participating securities	—		—		—		(34)
Net income attributable to common shareholders	$	15,861	$	8,245	$	56,005	$	43,996

Basic weighted average common shares outstanding	32,564		35,259		33,053		35,602
Basic earnings per common share	$	0.49	$	0.23	$	1.69	$	1.23

Diluted earnings per common share
Net income attributable to common shareholders	$	15,861	$	8,245	$	56,005	$	43,996

Weighted average common shares outstanding	32,564		35,259		33,053		35,602
Dilutive effect of outstanding equity awards (a)	236		189		234		238
Diluted weighted average common shares outstanding	32,800		35,448		33,287		35,840
Diluted earnings per common share	$	0.48	$	0.23	$	1.68	$	1.22

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(a) Excludes 48,000 and 147,000 shares underlying equity awards for the three and nine months ended September 24, 2023, respectively, and 58,000 and 47,000 shares underlying equity awards for the three and nine months ended September 25, 2022, respectively, as the effect of including such awards would have been anti-dilutive.