| NET (LOSS) INCOME PER SHARE |
16. NET (LOSS) INCOME PER SHARE Basic and diluted net (loss) income per share were calculated as follows (in thousands, except share and per share amounts): | | | Three Months Ended
April 3,
2026 | | | Three Months
Ended
March 31,
2025 | | | Numerator: | | | | | | | | (Loss) income from continuing operations | | $ | (338 | ) | | $ | 1,853 | | | Loss from discontinued operations | | | — | | | | (656 | ) | | Net (loss) income | | $ | (338 | ) | | $ | 1,197 | | | Denominator: | | | | | | | | | | Weighted average shares outstanding – basic | | | 20,123,187 | | | | 20,123,187 | | | Weighted average effect of potentially dilutive securities: | | | | | | | | | | Effect of potentially dilutive securities | | | — | | | | — | | | Weighted average shares outstanding – diluted | | | 20,123,187 | | | | 20,123,187 | | | Net (loss) income per share – continuing operations: | | | | | | | | | | Basic | | $ | (0.02 | ) | | $ | 0.09 | | | Diluted | | $ | (0.02 | ) | | $ | 0.09 | | | Net loss per share – discontinued operations: | | | | | | | | | | Basic | | $ | — | | | $ | (0.03 | ) | | Diluted | | $ | — | | | $ | (0.03 | ) | | Net (loss) income per share: | | | | | | | | | | Basic | | $ | (0.02 | ) | | $ | 0.06 | | | Diluted | | $ | (0.02 | ) | | $ | 0.06 | | For the three months ended April 3, 2026, basic weighted average shares outstanding includes 20,122,721 shares of Class A common stock of 20,122,721 shares and 466 shares of Class B common stock. For the three months ended April 3, 2026, the computation of diluted weighted average shares outstanding excludes the impact of (i) 530,890 shares of restricted stock with service-based vesting conditions, as they were antidilutive for the period and (ii) 80,000 shares of restricted stock and 677,280 SARs for which the satisfaction of performance-based vesting conditions tied to the occurrence of a qualifying liquidity event was not satisfied as of the end of the period. For the three months ended March 31, 2025, basic weighted average shares outstanding includes 20,122,721 shares of Class A common stock of 20,122,721 shares and 466 shares of Class B common stock. For the three months ended March 31, 2025, there were no dilutive securities as the Company had not issued any stock-based awards as of March 31, 2025. Pro Forma Net Income Per Share The following pro forma net income per share information is presented for comparative purposes only and does not purport to be indicative of the results that would have been achieved had the Reorganization occurred at an earlier date, nor of future results. The following table sets forth a reconciliation of the numerators and denominators used to compute pro forma basic and diluted net income per share (in thousands, except share and per share amounts): | | | Three Months Ended | | | | | April 3,
2026 | | | March 31,
2025 | | | Numerator: | | | | | | | | Net (loss) income | | $ | (338 | ) | | $ | 1,197 | | | Income tax effects of Reorganization(a) | | | 3,791 | | | | (83 | ) | | Pro forma net income | | $ | 3,453 | | | $ | 1,114 | | | | | | | | | | | | | Denominator: | | | | | | | | | | Pro forma weighted average common stock outstanding – basic(b) | | | 20,123,187 | | | | 20,123,187 | | | Pro forma weighted average common stock outstanding – diluted(b,c) | | | 20,426,286 | | | | 20,123,187 | | | | | | | | | | | | | Pro forma net income per share – basic | | $ | 0.17 | | | $ | 0.06 | | | Pro forma net income per share – diluted | | $ | 0.17 | | | $ | 0.06 | | | (a) | Following the Reorganization, the Company is subject to U.S. federal and applicable state income taxes. The adjustment for income taxes reflects the estimated income tax expense that would have been recognized had the Reorganization occurred on January 1, 2025, based on an effective tax rate of 21.0% and 6.95% for the three months ended April 3, 2026 and March 31, 2025, respectively. For the three months ended March 31, 2025, the difference between the U.S. federal statutory rate of 21.0% and the effective tax rate of 6.95% is primarily driven by a 15.45% reduction due to federal tax credits partially offset by other immaterial rate items of 1.4%, including state taxes and permanent differences. The pro forma effective tax rate for the three months ended April 3, 2026 represents the Company’s actual effective tax rate for the period, excluding the effect of the deferred tax adjustment of $3.5 million, which was recognized in the period of Reorganization and does not reflect ongoing income tax expense, and other discrete tax impacts of $0.3 million related to the Reorganization. The pro forma income tax effect for the three months ended March 31, 2025 includes the results of discontinued operations. | | (b) | Pro Forma as adjusted weighted average common stock outstanding (basic and diluted) reflects the Reorganization as if it occurred on January 1, 2025, including the impact of the Reorganization, resulting in 20,122,721 shares of Class A common stock issued and outstanding and 466 shares of Class B common stock issued and outstanding. | | (c) | The potential impact on the pro forma weighted average common stock outstanding (diluted) of 530,890 shares of restricted stock were evaluated under the treasury stock method. The Company determined that the impact of the 530,890 shares of restricted stock represented 227,791 dilutive shares, considering the weighted average unrecognized compensation costs of approximately $2.9 million for the three months ended April 3, 2026, and the estimated fair value of the Company’s common stock for the period. |
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