Calculation of Earnings Per Share

3 Months Ended

Sep. 01, 2012

Calculation of Earnings Per Share [Abstract]

CALCULATION OF EARNINGS PER SHARE

11. 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
	September 1, 2012						September 3, 2011
	Basic			Diluted			Basic		Diluted
Numerator for Basic and Diluted EPS:
Income from continuing operations	$	734		$	734		$	1,029	$	1,029
Less dividends:
Common stock		758			758			713		713
Class B common stock		156			156			133		133
Undistributed earnings (losses)	$	(180	)	$	(180	)	$	183	$	183
Common stock undistributed earnings (losses)	$	(149	)	$	(150	)	$	154	$	155
Class B common stock undistributed earnings (losses)		(31	)		(30	)		29		28
Total undistributed earnings (losses)	$	(180	)	$	(180	)	$	183	$	183
Income (loss) from discontinued operations	$	(87	)	$	(87	)	$	2,602	$	2,602
Less dividends:
Common stock		758			758			713		713
Class B common stock		156			156			133		133
Undistributed earnings (losses)	$	(1,001	)	$	(1,001	)	$	1,756	$	1,756
Common stock undistributed earnings (losses)	$	(831	)	$	(832	)	$	1,482	$	1,484
Class B common stock undistributed earnings (losses)		(170	)		(169	)		274		272
Total undistributed earnings (losses)	$	(1,001	)	$	(1,001	)	$	1,756	$	1,756
Net income	$	647		$	647		$	3,631	$	3,631
Less dividends:
Common stock		758			758			713		713
Class B common stock		156			156			133		133
Undistributed earnings (losses)	$	(267	)	$	(267	)	$	2,785	$	2,785
Common stock undistributed earnings (losses)	$	(222	)	$	(222	)	$	2,350	$	2,354
Class B common stock undistributed earnings (losses)		(45	)		(45	)		435		431
Total undistributed earnings (losses)	$	(267	)	$	(267	)	$	2,785	$	2,785
Denominator for basic and diluted EPS:
Common stock weighted average shares		12,772			12,772			14,343		14,343
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS		2,913			2,913			2,952		2,952
Effect of dilutive securities Dilutive stock options					102					174
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions					15,787					17,469
Income from continuing operations per share:
Common stock	$	0.05		$	0.05		$	0.06	$	0.06
Class B common stock	$	0.04		$	0.04		$	0.05	$	0.05
Income (loss) from discontinued operations per share:
Common stock	$	(0.01	)	$	(0.01	)	$	0.15	$	0.15
Class B common stock	$	—		$	—		$	0.14	$	0.14
Net income per share:
Common stock	$	0.04		$	0.04		$	0.21	$	0.21
Class B common stock	$	0.04		$	0.04		$	0.19	$	0.19

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first quarter of fiscal 2013 and fiscal 2012 were 268,564 and 0, respectively.