Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v2.4.0.8
Earnings Per Share
 6 Months Ended
Jun. 30, 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 and twenty-six weeks ended June 24, 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"), in July of 2012, all shares of series A preferred stock, series B preferred stock and series X preferred stock were converted into common stock.
Basic EPS of the Company's 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 the Company's 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
 
Twenty-Six Weeks Ended
 
June 30,
2013
 
June 24,
2012
 
June 30,
2013
 
June 24,
2012
BASIC
 
 
 
 
 
 
 
NUMERATOR:
 
 
 
 
 
 
 
Net income
$
3,160

 
$
1,731

 
$
5,801

 
$
2,111

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

 
234

 
—

 
491

Less: undistributed earnings allocated to participating interest
—

 
1,466

 
—

 
1,588

Net income available to common stockholders
$
3,160

 
$
31

 
$
5,801

 
$
32

DENOMINATOR:
 
 
 
 
 
 
 
Weighted-average common shares outstanding
16,269,243

 
194,766

 
16,190,264

 
201,634

Basic net income per common share
$
0.19

 
$
0.16

 
$
0.36

 
$
0.16

DILUTED
 
 
 
 
 
 
 
NUMERATOR:
 
 
 
 
 
 
 
Net income
$
3,160

 
$
1,731

 
$
5,801

 
$
2,111

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

 
234

 
—

 
491

Less: undistributed earnings allocated to participating interest
—

 
84

 
—

 
91

Net income available to common and participating stockholders
$
3,160

 
$
1,413

 
$
5,801

 
$
1,529

DENOMINATOR:
 
 
 
 
 
 
 
Weighted-average common shares outstanding
16,269,243

 
194,766

 
16,190,264

 
201,634

Dilutive effect of preferred stock conversion
—

 
8,689,686

 
—

 
9,369,629

Dilutive effect of stock options
407,978

 
653,641

 
435,748

 
648,515

Weighted-average of diluted shares
16,677,221

 
9,538,093

 
16,626,012

 
10,219,778

Diluted net income per common share
$
0.19

 
$
0.15

 
$
0.35

 
$
0.15