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Calculation Of Earnings Per Share
3 Months Ended
Sep. 03, 2011
Calculation Of Earnings Per Share  
Calculation Of Earnings Per Share

9. 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 income and comprehensive income are based on the following amounts (in thousands, except per share amounts):

 

     Three Months Ended  
     September 3, 2011      August 28, 2010  
     Basic      Diluted      Basic      Diluted  

Numerator for Basic and Diluted EPS:

           

Income from continuing operations

   $ 1,029       $ 1,029       $ 453       $ 453   

Less dividends:

           

Common stock

     713         713         294         294   

Class B common stock

     133         133         55         55   
  

 

 

    

 

 

    

 

 

    

 

 

 

Undistributed earnings

   $ 183       $ 183       $ 104       $ 104   
  

 

 

    

 

 

    

 

 

    

 

 

 

Common stock undistributed earnings

   $ 154       $ 155       $ 88       $ 88   

Class B common stock undistributed earnings

     29         28         16         16   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total undistributed earnings

   $ 183       $ 183       $ 104       $ 104   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from discontinued operations

   $ 2,602       $ 2,602       $ 7,923       $ 7,923   

Less dividends:

           

Common stock

     713         713         294         294   

Class B common stock

     133         133         55         55   
  

 

 

    

 

 

    

 

 

    

 

 

 

Undistributed earnings

   $ 1,756       $ 1,756       $ 7,574       $ 7,574   
  

 

 

    

 

 

    

 

 

    

 

 

 

Common stock undistributed earnings

   $ 1,482       $ 1,484       $ 6,381       $ 6,394   

Class B common stock undistributed earnings

     274         272         1,193         1,180   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total undistributed earnings

   $ 1,756       $ 1,756       $ 7,574       $ 7,574   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 3,631       $ 3,631       $ 8,376       $ 8,376   

Less dividends:

           

Common stock

     713         713         294         294   

Class B common stock

     133         133         55         55   
  

 

 

    

 

 

    

 

 

    

 

 

 

Undistributed earnings

   $ 2,785       $ 2,785       $ 8,027       $ 8,027   
  

 

 

    

 

 

    

 

 

    

 

 

 

Common stock undistributed earnings

   $ 2,350       $ 2,354       $ 6,763       $ 6,777   

Class B common stock undistributed earnings

     435         431         1,264         1,250   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total undistributed earnings

   $ 2,785       $ 2,785       $ 8,027       $ 8,027   
  

 

 

    

 

 

    

 

 

    

 

 

 

Denominator for basic and diluted EPS:

           

Common stock weighted average shares

     14,343         14,343         14,679         14,679   
  

 

 

       

 

 

    

Class B common stock weighted average shares, and shares under if-converted method for diluted EPS

     2,952         2,952         3,048         3,048   
  

 

 

       

 

 

    

Effect of dilutive securities

           

Unvested restricted stock awards

              4   

Dilutive stock options

        174            186   

Denominator for diluted EPS adjusted for weighted average shares and assumed conversions

        17,469            17,917   
     

 

 

       

 

 

 

Income from continuing operations per share:

           

Common stock

   $ 0.06       $ 0.06       $ 0.03       $ 0.03   
  

 

 

    

 

 

    

 

 

    

 

 

 

Class B common stock

   $ 0.05       $ 0.05       $ 0.02       $ 0.02   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from discontinued operations per share:

           

Common stock

   $ 0.15       $ 0.15       $ 0.45       $ 0.44   
  

 

 

    

 

 

    

 

 

    

 

 

 

Class B common stock

   $ 0.14       $ 0.14       $ 0.41       $ 0.41   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income per share:

           

Common stock

   $ 0.21       $ 0.21       $ 0.48       $ 0.47   
  

 

 

    

 

 

    

 

 

    

 

 

 

Class B common stock

   $ 0.19       $ 0.19       $ 0.43       $ 0.43   
  

 

 

    

 

 

    

 

 

    

 

 

 

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first quarter of fiscal 2012 and fiscal 2011 were 0 and 310,714, respectively.