Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Common Share (Policies)

v3.20.1
Net Income (Loss) Per Common Share (Policies)
 3 Months Ended
May 02, 2020
Net Income (Loss) Per Common Share [Abstract]  
Net Loss Per Common Share
Net Loss Per Common Share
During fiscal 2018, the Company issued a restricted stock award that meets the criteria of a participating security. Accordingly, basic income (loss) per share is computed using the two-class method under which earnings are allocated to both common shares and participating securities. Undistributed net losses are allocated entirely to common shareholders since the participating security has no contractual obligation to share in the losses. All shares of restricted stock are deducted from weighted-average number of common shares outstanding – basic. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock of the Company during reported periods and is calculated using the treasury method.
A reconciliation of net loss per share calculations and the number of shares used in the calculation of basic loss per share and diluted loss per share is as follows:
 
 
Three-Month Periods Ended
 
 
May 2,
2020
 
May 4,
2019
Numerator:
 
 
 
 
Net loss
 
$
(6,828,000
)
 
$
(20,990,000
)
Earnings allocated to participating share awards (a)
 
—

 
—

Net loss attributable to common shares — Basic and diluted
 
$
(6,828,000
)
 
$
(20,990,000
)
Denominator:
 
 
 
 
Weighted average number of common shares outstanding — Basic
 
8,290,790

 
6,731,846

Dilutive effect of stock options, non-vested shares and warrants (b)
 
—

 
—

Weighted average number of common shares outstanding — Diluted
 
8,290,790

 
6,731,846

Net loss per common share
 
$
(0.82
)
 
$
(3.12
)
Net loss per common share — assuming dilution
 
$
(0.82
)
 
$
(3.12
)

(a) During fiscal 2018, the Company issued a restricted stock award that is a participating security. For the three-month periods ended May 2, 2020 and May 4, 2019, the entire undistributed loss is allocated to common shareholders.
(b) For the three-month periods ended May 2, 2020 and May 4, 2019, there were 72,000 and 17,000 incremental in-the-money potentially dilutive common shares outstanding. The incremental in-the-money potentially dilutive common stock shares are excluded from the computation of diluted earnings per share, as the effect of their inclusion would be anti-dilutive.