Central Garden & Pet Company Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

9 Months Ended

Jun. 27, 2020

The following is a reconciliation of the numerators and denominators of the basic and diluted per share computations for income from continuing operations (in thousands except share and per share amounts).


	Three Months Ended								Nine Months Ended
	June 27, 2020								June 27, 2020
	Income		Shares	Per Share		Income		Shares	Per Share
Basic EPS:
Net income available to common shareholders	$	68,800	53,441	$	1.29	$	107,087	54,261	$	1.97
Effect of dilutive securities (1):
Options to purchase common stock	—		278	(0.01)		—		339	(0.01)
Restricted shares	—		449	(0.01)		—		384	(0.01)
Diluted EPS:
Net income available to common shareholders	$	68,800	54,168	$	1.27	$	107,087	54,984	$	1.95

(1) The potential effects of stock awards were excluded from the diluted earnings per share calculation for the three months ended December 28, 2019, because their inclusion in a net loss period would be anti-dilutive to the earnings per share calculation.


	Three Months Ended								Nine Months Ended
	June 29, 2019								June 29, 2019
	Income		Shares	Per Share		Income		Shares	Per Share
Basic EPS:
Net income available to common shareholders	$	46,152	57,319	$	0.81	$	90,346	57,021	$	1.58
Effect of dilutive securities:
Options to purchase common stock	—		412	(0.01)		—		559	(0.01)
Restricted shares	—		254	—		—		357	(0.01)
Diluted EPS:
Net income available to common shareholders	$	46,152	57,985	$	0.80	$	90,346	57,937	$	1.56

Options to purchase 3.1 million shares of common stock at prices ranging from $10.63 to $38.10 per share were outstanding at June 27, 2020, and options to purchase 2.6 million shares of common stock at prices ranging from $8.56 to $38.10 per share were outstanding at June 29, 2019.

For the three months ended June 27, 2020 and June 29, 2019, 0.5 million and 1.8 million options outstanding were not included in the computation of diluted earnings per share because the option exercise prices were greater than the average market price of the common shares and therefore, the effect of including these options would be antidilutive.

For the nine months ended June 27, 2020 and June 29, 2019, 1.0 million and 1.1 million options outstanding were not included in the computation of diluted earnings per share because the option exercise prices were greater than the average market price of the common shares and therefore, the effect of including these options would be antidilutive.