Quarterly report pursuant to Section 13 or 15(d)

EARNINGS PER SHARE

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EARNINGS PER SHARE
 9 Months Ended
Sep. 23, 2012
EARNINGS PER SHARE

3. EARNINGS PER SHARE

The number of shares and earnings per share data (“EPS”) for all periods presented are based on the historical weighted-average shares of common stock outstanding. EPS 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 IPO, on July 11, 2012, the Company’s certificate of incorporation was amended to effect a 2.7585470602469:1 reverse stock split of the stock. 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      Thirty-Nine Weeks Ended  
     September 23,
2012		      September 25,
2011		      September 23,
2012		      September 25,
2011		  

BASIC

            

Numerator:

            

Net income

    $ 790       $ 1,208       $ 2,902       $ 3,147   

Less liquidation preference and preferred return on series X preferred stock

      86         283         577         821   

Less undistributied earnings allocated to participating interest

      171         908         1,594         2,289   
  

 

 

     

 

 

     

 

 

     

 

 

  

Net income available to common stockholders

    $ 533       $ 17       $ 731       $ 37   
  

 

 

     

 

 

     

 

 

     

 

 

  

Denominator:

            

Weighted-average common shares outstanding

      10,215,755         203,744         3,539,732         181,117   
  

 

 

     

 

 

     

 

 

     

 

 

  

Basic earnings per common share

    $ 0.05       $ 0.08       $ 0.21       $ 0.20   
  

 

 

     

 

 

     

 

 

     

 

 

  

DILUTED

            

Numerator:

            

Net income

    $ 790       $ 1,208       $ 2,902       $ 3,147   

Less liquidation preference and preferred return on series X preferred stock

      86         283         577         821   

Less undistributed earnings allocated to participating interest

      10         53         91         130   
  

 

 

     

 

 

     

 

 

     

 

 

  

Net income available to common and participating stockholders

    $ 694       $ 872       $ 2,234       $ 2,196   
  

 

 

     

 

 

     

 

 

     

 

 

  

Denominator:

            

Weighted-average common shares outstanding

      10,215,755         203,744         3,539,732         181,117   

Dilutive effect of preferred stock conversion

      3,083,397         10,049,572         7,279,884         10,049,572   

Dilutive effect of stock options

      734,082         626,457         682,254         615,005   
  

 

 

     

 

 

     

 

 

     

 

 

  

Weighted-average of diluted shares

      14,033,234         10,879,773         11,501,870         10,845,694   
  

 

 

     

 

 

     

 

 

     

 

 

  

Diluted earnings per common share

    $ 0.05       $ 0.08       $ 0.19       $ 0.20