Earnings Per Share

3 Months Ended

Nov. 21, 2012

Earnings Per Share

Note 11. Earnings Per Share

Basic net income per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding and unvested restricted stock for the reporting period. 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. For the calculation of diluted net income per share, the basic weighted average number of shares is increased by the dilutive effect of stock options determined using the treasury stock method. Stock options excluded from the computation of net income per share for the quarter ended November 21, 2012 include approximately 89,000 shares with exercise prices exceeding market prices and approximately 5,000 shares whose inclusion would also be antidilutive.

The components of basic and diluted net income per share are as follows:

	Quarter Ended
	November 21, 2012			November 23, 2011
	(12 weeks)			(12 weeks)
	(In thousands expect per share data)
Numerator:
Income (loss) from continuing operations	$	189		$	583
Loss from discontinued operations		(60	)		(379	)
Net income (loss)	$	129		$	204
Denominator:
Denominator for basic earnings per share—weighted-average shares		28,386			28,262
Effect of potentially dilutive securities:
Employee and non-employee stock options		181			42
Denominator for earnings per share assuming dilution		28,567			28,304
Income (loss) per share from continuing operations:
Basic	$	0.01		$	0.02
Assuming dilution		0.01			0.02
Loss per share from discontinued operations:
Basic	$	—		$	(0.01	)
Assuming dilution		—			(0.01	)
Net income (loss) per share:
Basic	$	0.01		$	0.01
Assuming dilution		0.01			0.01