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 are based on the following amounts (in thousands, except per share amounts):



	Three Months Ended
	March 1, 2014						March 2, 2013
	Basic			Diluted			Basic			Diluted

Numerator for Basic and Diluted EPS:
Income (loss) from continuing operations	$	(112	)	$	(112	)	$	586		$	586
Less dividends:
Common stock	710			710			738			738
Class B common stock	118			118			148			148
Undistributed losses	$	(940	)	$	(940	)	$	(300	)	$	(300	)
Common stock undistributed losses	$	(806	)	$	(806	)	$	(250	)	$	(250	)
Class B common stock undistributed losses	(134		)	(134		)	(50		)	(50		)
Total undistributed losses	$	(940	)	$	(940	)	$	(300	)	$	(300	)
Loss from discontinued operations	$	(420	)	$	(420	)	$	(182	)	$	(182	)
Less dividends:
Common stock	710			710			738			738
Class B common stock	118			118			148			148
Undistributed losses	$	(1,248	)	$	(1,248	)	$	(1,068	)	$	(1,068	)
Common stock undistributed losses	$	(1,070	)	$	(1,070	)	$	(890	)	$	(891	)
Class B common stock undistributed losses	(178		)	(178		)	(178		)	(177		)
Total undistributed losses	$	(1,248	)	$	(1,248	)	$	(1,068	)	$	(1,068	)
Net income (loss)	$	(532	)	$	(532	)	$	404		$	404
Less dividends:
Common stock	710			710			738			738
Class B common stock	118			118			148			148
Undistributed losses	$	(1,360	)	$	(1,360	)	$	(482	)	$	(482	)
Common stock undistributed losses	$	(1,166	)	$	(1,166	)	$	(401	)	$	(402	)
Class B common stock undistributed losses	(194		)	(194		)	(81		)	(80		)
Total undistributed losses	$	(1,360	)	$	(1,360	)	$	(482	)	$	(482	)
Denominator for basic and diluted EPS:
Common stock weighted average shares	11,832			11,832			12,292			12,292
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS	2,191			2,191			2,740			2,740
Effect of dilutive stock options				117						133
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions				14,140						15,165
Income (loss) from continuing operations per share:
Common stock	$	(0.01	)	$	(0.01	)	$	0.04		$	0.04
Class B common stock	$	(0.01	)	$	(0.01	)	$	0.04		$	0.04
Loss from discontinued operations per share:
Common stock	$	(0.03	)	$	(0.03	)	$	(0.01	)	$	(0.01	)
Class B common stock	$	(0.03	)	$	(0.03	)	$	(0.01	)	$	(0.01	)
Net income (loss) per share:
Common stock	$	(0.04	)	$	(0.04	)	$	0.03		$	0.03
Class B common stock	$	(0.04	)	$	(0.04	)	$	0.03		$	0.03

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the third quarter of fiscal 2014 and fiscal 2013 were 512,064 and 282,564, respectively.



	Nine Months Ended
	March 1, 2014						March 2, 2013
	Basic			Diluted			Basic			Diluted

Numerator for Basic and Diluted EPS:
Income from continuing operations	$	2,498		$	2,498		$	1,901		$	1,901
Less dividends:
Common stock	2,143			2,143			2,233			2,233
Class B common stock	370			370			452			452
Undistributed losses	$	(15	)	$	(15	)	$	(784	)	$	(784	)
Common stock undistributed losses	$	(13	)	$	(13	)	$	(652	)	$	(653	)
Class B common stock undistributed losses	(2		)	(2		)	(132		)	(131		)
Total undistributed losses	$	(15	)	$	(15	)	$	(784	)	$	(784	)
Loss from discontinued operations	$	(532	)	$	(532	)	$	(472	)	$	(472	)
Less dividends:
Common stock	2,143			2,143			2,233			2,233
Class B common stock	370			370			452			452
Undistributed losses	$	(3,045	)	$	(3,045	)	$	(3,157	)	$	(3,157	)
Common stock undistributed losses	$	(2,600	)	$	(2,604	)	$	(2,624	)	$	(2,629	)
Class B common stock undistributed losses	(445		)	(441		)	(533		)	(528		)
Total undistributed losses	$	(3,045	)	$	(3,045	)	$	(3,157	)	$	(3,157	)
Net income	$	1,966		$	1,966		$	1,429		$	1,429
Less dividends:
Common stock	2,143			2,143			2,233			2,233
Class B common stock	370			370			452			452
Undistributed losses	$	(547	)	$	(547	)	$	(1,256	)	$	(1,256	)
Common stock undistributed losses	$	(467	)	$	(468	)	$	(1,044	)	$	(1,046	)
Class B common stock undistributed losses	(80		)	(79		)	(212		)	(210		)
Total undistributed losses	$	(547	)	$	(547	)	$	(1,256	)	$	(1,256	)
Denominator for basic and diluted EPS:
Common stock weighted average shares	11,942			11,942			12,500			12,500
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS	2,270			2,270			2,822			2,822
Effect of dilutive securities Dilutive stock options				123						133
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions				14,335						15,455
Income from continuing operations per share:
Common stock	$	0.18		$	0.17		$	0.13		$	0.12
Class B common stock	$	0.16		$	0.16		$	0.11		$	0.11
Loss from discontinued operations per share:
Common stock	$	(0.04	)	$	(0.04	)	$	(0.03	)	$	(0.03	)
Class B common stock	$	(0.03	)	$	(0.03	)	$	(0.03	)	$	(0.03	)
Net income per share:
Common stock	$	0.14		$	0.13		$	0.10		$	0.09
Class B common stock	$	0.13		$	0.13		$	0.08		$	0.08

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first nine months of fiscal 2014 and fiscal 2013 were 512,064 and 282,564, respectively.