El Pollo Loco 2016 Annual Report Download - page 80

EL POLLO LOCO HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Belowareourbasicanddilutednetincome(loss)persharedatafortheperiodsindicated,whichareinthousandsexceptforpersharedata.

For the Years Ended
December 30,
2015
December 31,
2014
December 25,
2013
Numerator:         
Netincome(loss)  $ 24,054  $ 42,463  $ (16,873)
Denominator:         
Weighted-averagesharesoutstanding—Basic   37,949,316   32,285,484   28,712,622
Weighted-averagesharesoutstanding—Diluted   39,039,558   34,346,241   28,712,622
Netincome(loss)pershare—Basic  $ 0.63  $ 1.32  $ (0.59)
Netincome(loss)pershare—Diluted  $ 0.62  $ 1.24  $ (0.59)
Anti-dilutivesecuritiesnotconsideredindilutedEPS
calculation   214,411   5,865   1,709,748


FortheyearendedDecember25,2013,potentiallydilutivesecurities,whichconsistofoptionstopurchase1,709,748sharesofcommonstockatpricesranging
from$1.81to$12.72werenotincludedinthecomputationofdilutednetlosspersharebecausesuchinclusionwouldbeantidilutive.
Belowisareconciliationofbasicanddilutedsharecounts.

For the Years Ended
December 30,
2015
December 31,
2014
December 25,
2013
Weighted-averagesharesoutstanding—Basic   37,949,316   32,285,484   28,712,622
Dilutiveeffectofstockoptionsandrestrictedshares   1,090,242   2,060,757   —
Weighted-averagesharesoutstanding—Diluted   39,039,558   34,346,241   28,712,622



14. COMMITMENTS AND CONTINGENCIES
Legal Matters
OnoraboutFebruary24,2014,aformeremployeefiledaclassactionintheSuperiorCourtoftheStateofCalifornia,CountyofOrange,againstEPLonbehalfof
allputativeclassmembers(allhourlyemployeesfrom2010tothepresent)allegingcertainviolationsofCalifornialaborlaws,includingfailuretopayovertime
compensation,failuretoprovidemealperiodsandrestbreaks,andfailuretoprovideitemizedwagestatements.Theputativeleadplaintiff’srequestedremedies
includecompensatoryandpunitivedamages,injunctiverelief,disgorgementofprofits,andreasonableattorneys’feesandcosts.Nospecificamountofdamages
soughtwasspecifiedinthecomplaint.WehaveexecutedaMemorandumofUnderstandingoutlininganagreementinprinciplebetweenthepartiestosettlethe
claimsonaclasswidebasis.Thepartiesareworkingtomemorializethesettlementandsecuretherequiredcourtapproval.
DanielTurocy,etal.v.ElPolloLocoHoldings,Inc.,etal.(CaseNo.8:15-cv-01343)wasfiledintheUnitedStatesDistrictCourtfortheCentralDistrictof
CaliforniaonAugust24,2015,andRonHuston,etal.v.ElPolloLocoHoldings,Inc.,etal.(CaseNo.8:15-cv-01710)wasfiledintheUnitedStatesDistrictCourt
fortheCentralDistrictofCaliforniaonOctober22,2015.Thetwolawsuitshavebeenconsolidated,withco-leadplaintiffsandclasscounsel.Aconsolidated
complaintwasfiledonJanuary29,2016onbehalfofco-leadplaintiffsandotherssimilarlysituated,allegingviolationsoffederalsecuritieslawsinconnection
withHoldingscommonstockpurchasedorotherwiseacquiredandthepurchaseofcalloptionsorthesaleofputoptions,betweenMay1,2015andAugust13,
2015(the“ClassPeriod”).ThenameddefendantsareHoldings;StephenJ.Sather,LauranceRoberts,andEdwardJ.Valle(collectively,the“Individual
Defendants”);andTrimaranPolloPartners,L.L.C.,TrimaranCapitalPartners,andFreemanSpogli&Co.(collectively,the“ControllingShareholderDefendants”).
Amongotherthings,Plaintiffsallegethat,in2014andearly2015,HoldingssufferedlossesduetorisinglaborcostsinCaliforniaand,inanattempttomitigatethe
effectsofsuchrisingcosts,removeda$5valueoptionfromourmenu,whichresultedinadecreaseinvalue-consciousstoretraffic.Plaintiffsfurtherallegethat
duringtheClassPeriod,HoldingsandtheIndividualDefendantsmadeaseriesofmateriallyfalseandmisleadingstatementsthatconcealedtheeffectthatthese
factorswerehavingonstoresalesgrowth,resultinginHoldingsstockcontinuingtobetradedatartificiallyinflatedprices.Asaresult,Plaintiffsandothermembers
oftheputativeclassallegedlysuffereddamagesinconnectionwiththeirpurchaseofHoldings’stockduringtheClassPeriod.Inaddition,Plaintiffsallegethatthe
IndividualDefendantsandControllingShareholderDefendantshaddirectinvolvementin,andresponsibilityover,theoperationsofHoldings,andarepresumedto
havehad,amongotherthings,thepowertocontrolorinfluence
77