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


	Three Months Ended
	March 2, 2013						March 3, 2012
	Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted EPS:
Income from continuing operations	$	586		$	586		$	1,591		$	1,591
Less dividends:
Common stock		738			738			698			698
Class B common stock		148			148			132			132

Undistributed earnings (losses)	$	(300	)	$	(300	)	$	761		$	761

Common stock undistributed earnings (losses)	$	(250	)	$	(250	)	$	640		$	640
Class B common stock undistributed earnings (losses)		(50	)		(50	)		121			121

Total undistributed earnings (losses)	$	(300	)	$	(300	)	$	761		$	761

Loss from discontinued operations	$	(182	)	$	(182	)	$	(252	)	$	(252	)
Less dividends:
Common stock		738			738			698			698
Class B common stock		148			148			132			132

Undistributed losses	$	(1,068	)	$	(1,068	)	$	(1,082	)	$	(1,082	)

Common stock undistributed losses	$	(890	)	$	(891	)	$	(909	)	$	(911	)
Class B common stock undistributed losses		(178	)		(177	)		(173	)		(171	)

Total undistributed losses	$	(1,068	)	$	(1,068	)	$	(1,082	)	$	(1,082	)

Net income	$	404		$	404		$	1,339		$	1,339
Less dividends:
Common stock		738			738			698			698
Class B common stock		148			148			132			132

Undistributed earnings (losses)	$	(482	)	$	(482	)	$	509		$	509

Common stock undistributed earnings (losses)	$	(401	)	$	(402	)	$	428		$	428
Class B common stock undistributed earnings (losses)		(81	)		(80	)		81			81

Total undistributed earnings (losses)	$	(482	)	$	(482	)	$	509		$	509

Denominator for basic and diluted EPS:
Common stock weighted average shares		12,292			12,292			13,988			13,988

Class B common stock weighted average shares, and shares under if-converted method for diluted EPS		2,740			2,740			2,940			2,940

Effect of dilutive securities
Dilutive stock options					133						122
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions					15,165						17,050

Income from continuing operations per share:
Common stock	$	0.04		$	0.04		$	0.10		$	0.09

Class B common stock	$	0.04		$	0.04		$	0.09		$	0.09

Loss from discontinued operations per share:
Common stock	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.01	)

Class B common stock	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.01	)

Net income per share:
Common stock	$	0.03		$	0.03		$	0.08		$	0.08

Class B common stock	$	0.03		$	0.03		$	0.08		$	0.08

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the third quarter of fiscal 2013 and fiscal 2012 were 282,564 and 274,564, respectively.


	Nine Months Ended
	March 2, 2013						March 3, 2012
	Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted EPS:
Income from continuing operations	$	1,901		$	1,901		$	4,249		$	4,249
Less dividends:
Common stock		2,233			2,233			2,111			2,111
Class B common stock		452			452			397			397

Undistributed earnings (losses)	$	(784	)	$	(784	)	$	1,741		$	1,741

Common stock undistributed earnings (losses)	$	(652	)	$	(653	)	$	1,466		$	1,468
Class B common stock undistributed earnings (losses)		(132	)		(131	)		275			273

Total undistributed earnings (losses)	$	(784	)	$	(784	)	$	1,741		$	1,741

Income (loss) from discontinued operations	$	(472	)	$	(472	)	$	1,551		$	1,551
Less dividends:
Common stock		2,233			2,233			2,111			2,111
Class B common stock		452			452			397			397

Undistributed losses	$	(3,157	)	$	(3,157	)	$	(957	)	$	(957	)

Common stock undistributed losses	$	(2,624	)	$	(2,629	)	$	(806	)	$	(807	)
Class B common stock undistributed losses		(533	)		(528	)		(151	)		(150	)

Total undistributed losses	$	(3,157	)	$	(3,157	)	$	(957	)	$	(957	)

Net income	$	1,429		$	1,429		$	5,800		$	5,800
Less dividends:
Common stock		2,233			2,233			2,111			2,111
Class B common stock		452			452			397			397

Undistributed earnings (losses)	$	(1,256	)	$	(1,256	)	$	3,292		$	3,292

Common stock undistributed earnings (losses)	$	(1,044	)	$	(1,046	)	$	2,771		$	2,776
Class B common stock undistributed earnings (losses)		(212	)		(210	)		521			516

Total undistributed earnings (losses)	$	(1,256	)	$	(1,256	)	$	3,292		$	3,292

Denominator for basic and diluted EPS:
Common stock weighted average shares		12,500			12,500			14,134			14,134

Class B common stock weighted average shares, and shares under if-converted method for diluted EPS		2,822			2,822			2,944			2,944

Effect of dilutive securities
Dilutive stock options					133						166
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions					15,455						17,244

Income from continuing operations per share:
Common stock	$	0.13		$	0.12		$	0.25		$	0.25

Class B common stock	$	0.11		$	0.11		$	0.23		$	0.23

Income (loss) from discontinued operations per share:
Common stock	$	(0.03	)	$	(0.03	)	$	0.09		$	0.09

Class B common stock	$	(0.03	)	$	(0.03	)	$	0.08		$	0.08

Net income per share:
Common stock	$	0.10		$	0.09		$	0.34		$	0.34

Class B common stock	$	0.08		$	0.08		$	0.31		$	0.31

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first nine months of fiscal 2013 and fiscal 2012 were 282,564 and 161,000, respectively.