CALCULATION OF EARNINGS PER SHARE

We have authorized 30,000,000 shares of common stock, 10,000,000 shares of Class B common stock, and 5,000,000 shares of preferred stock. The Class B common stock has 10 votes per share and has transferability restrictions; however, Class B common stock may be converted into common stock on a share-for-share basis at any time. With respect to dividends and distributions, shares of common stock and Class B common stock rank equally and have the same rights, except that Class B common stock cash dividends are limited to 90% of the amount of Class A common stock cash dividends.

In accordance with ASC 260-10, Earnings Per Share (“ASC 260”), our Class B common stock is considered a participating security requiring the use of the two-class method for the computation of basic and diluted earnings per share. The two-class computation method for each period reflects the cash dividends paid per share for each class of stock, plus the amount of allocated undistributed earnings per share computed using the participation percentage which reflects the dividend rights of each class of stock. Basic and diluted earnings per share were computed using the two-class method as prescribed in ASC 260. The shares of Class B common stock are considered to be participating convertible securities since the shares of Class B common stock are convertible on a share-for-share basis into shares of common stock and may participate in dividends with common stock according to a predetermined formula which is 90% of the amount of Class A common stock cash dividends.

The earnings per share (“EPS”) presented in our unaudited consolidated statements of comprehensive income (loss) are based on the following amounts (in thousands, except per share amounts):



	For the Three Months Ended
	August 31, 2013						September 1, 2012
	Basic			Diluted			Basic			Diluted

Numerator for Basic and Diluted EPS:
Income from continuing operations	$	1,979		$	1,979		$	734		$	734
Less dividends:
Common stock	723			723			758			758
Class B common stock	134			134			156			156
Undistributed earnings (losses)	$	1,122		$	1,122		$	(180	)	$	(180	)
Common stock undistributed earnings (losses)	$	951		$	952		$	(149	)	$	(150	)
Class B common stock undistributed earnings (losses)	171			170			(31		)	(30		)
Total undistributed earnings (losses)	$	1,122		$	1,122		$	(180	)	$	(180	)
Loss from discontinued operations	$	(11	)	$	(11	)	$	(87	)	$	(87	)
Less dividends:
Common stock	723			723			758			758
Class B common stock	134			134			156			156
Undistributed earnings (losses)	$	(868	)	$	(868	)	$	(1,001	)	$	(1,001	)
Common stock undistributed earnings (losses)	$	(735	)	$	(737	)	$	(831	)	$	(832	)
Class B common stock undistributed earnings (losses)	(133		)	(131		)	(170		)	(169		)
Total undistributed earnings (losses)	$	(868	)	$	(868	)	$	(1,001	)	$	(1,001	)
Net income	$	1,968		$	1,968		$	647		$	647
Less dividends:
Common stock	723			723			758			758
Class B common stock	134			134			156			156
Undistributed earnings (losses)	$	1,111		$	1,111		$	(267	)	$	(267	)
Common stock undistributed earnings (losses)	$	941		$	943		$	(222	)	$	(222	)
Class B common stock undistributed earnings (losses)	170			168			(45		)	(45		)
Total undistributed earnings (losses)	$	1,111		$	1,111		$	(267	)	$	(267	)
Denominator for basic and diluted EPS:
Common stock weighted average shares	12,127			12,127			12,772			12,772
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS	2,428			2,428			2,913			2,913
Effect of dilutive stock options				133						102
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions				14,688						15,787
Income from continuing operations per share:
Common stock	$	0.14		$	0.13		$	0.05		$	0.05
Class B common stock	$	0.13		$	0.13		$	0.04		$	0.04
Loss from discontinued operations per share:
Common stock	$	—		$	—		$	(0.01	)	$	(0.01	)
Class B common stock	$	—		$	—		—			—
Net income per share:
Common stock	$	0.14		$	0.13		$	0.04		$	0.04
Class B common stock	$	0.13		$	0.13		$	0.04		$	0.04

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first quarter of fiscal 2014 and fiscal 2013 were 462,464 and 268,564, respectively.