Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v2.4.0.6
Earnings Per Share
 3 Months Ended
Mar. 31, 2013
Earnings Per Share [Abstract]  
Earnings Per Share
EARNINGS PER SHARE
The number of shares and earnings per share (“EPS”) data for all periods presented are based on the historical weighted-average shares of common stock outstanding. EPS for the thirteen weeks ended March 25, 2012 is computed using the two-class method. The two-class method determines EPS for common stock and participating securities according to dividends and dividend equivalents and their respective participation rights in undistributed earnings. The Company’s convertible preferred stockholders were entitled to receive dividends in the event dividends on the Company’s common stock were declared. As a result, the shares of the Company’s convertible preferred stock were deemed to be participating securities.
In connection with the Company's initial public offering ("IPO"), on July 11, 2012, the Company’s certificate of incorporation was amended to effect a 2.7585470602469:1 reverse stock split. Also in connection with the closing of the IPO, all shares of series A preferred stock, series B preferred stock and series X preferred stock were converted into common stock.
Basic EPS of common stock is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period.
Diluted EPS of common stock is computed on the basis of the weighted-average number of shares of common stock plus the effect of dilutive potential shares of common stock equivalents outstanding during the period using the treasury stock method for dilutive options and the if converted method for convertible preferred stock.
The computation of basic and diluted earnings per share is as follows:
 
Thirteen Weeks Ended
 
March 31,
2013
 
March 25,
2012
BASIC
 
 
 
NUMERATOR:
 
 
 
Net income
$
2,641

 
$
381

Less: liquidation preference and preferred return on series X preferred stock
—

 
313

Less: undistributed earnings allocated to participating interest
—

 
66

Net income available to common stockholders
$
2,641

 
$
2

DENOMINATOR:
 
 
 
Weighted-average common shares outstanding
16,111,286

 
208,505

Basic net income per common share
$
0.16

 
$
0.01

DILUTED
 
 
 
NUMERATOR:
 
 
 
Net income
$
2,641

 
$
381

Less: liquidation preference and preferred return on series X preferred stock
—

 
313

Less: undistributed earnings allocated to participating interest
—

 
4

Net income available to common and participating stockholders
$
2,641

 
$
64

DENOMINATOR:
 
 
 
Weighted-average common shares outstanding
16,111,286

 
208,505

Dilutive effect of preferred stock conversion
—

 
10,049,572

Dilutive effect of stock options
465,767

 
648,728

Weighted-average of diluted shares
16,577,053

 
10,906,805

Diluted net income per common share
$
0.16

 
$
0.01