Net Income per Common Share
Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. With regards to common stock subject to vesting requirements and restricted stock units issued to employees, the calculation includes only the vested portion of such stock.
The potential issuance of common shares upon the exercise, conversion or vesting of unvested restricted stock units, common stock subject to vesting, stock options and stock appreciation right units ("SARs"), as calculated under the treasury stock method, may be dilutive. Diluted net income per share is computed by dividing the net income by the weighted average number of common shares outstanding and will increase by the assumed conversion of other potentially dilutive securities during the period.
1. Basis of Presentation and General Information (continued)
The following table reconciles basic and diluted weighted average shares:
|
| Year Ended |
| |||||||||
|
| December 30, |
|
| December 31, |
|
| January 1, |
| |||
|
| 2022 |
|
| 2021 |
|
| 2021 |
| |||
Basic weighted average common shares outstanding |
|
| 31,399,813 |
|
|
| 30,021,097 |
|
|
| 29,988,244 |
|
Effect of dilutive securities: |
|
|
|
|
|
|
|
|
| |||
Unvested restricted stock units and common stock subject to vesting requirements issued to employees |
|
| 555,483 |
|
|
| 529,535 |
|
|
| 212,496 |
|
Common stock issuable upon the exercise of stock options and SARs |
|
| 6,445 |
|
|
| 2,331,976 |
|
|
| 2,203,796 |
|
Dilutive weighted average common shares outstanding |
|
| 31,961,741 |
|
|
| 32,882,608 |
|
|
| 32,404,536 |
|
Approximately 2 thousand shares of common stock equivalents were excluded from the computations of diluted net income per common share for both of the years ended December 30, 2022 and December 31, 2021, as inclusion would have had an anti-dilutive effect on diluted net income per common share.
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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