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CALCULATION OF EARNINGS PER SHARE
 6 Months Ended
Dec. 02, 2017
Earnings Per Share [Abstract]  
CALCULATION OF EARNINGS PER SHARE

9.  CALCULATION OF EARNINGS PER SHARE

 

We have authorized 17,000,000 shares of common stock, and 3,000,000 shares of Class B common 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 
   December 2, 2017   November 26, 2016 
   Basic   Diluted   Basic   Diluted 
Numerator for Basic and Diluted EPS:                    
Income (loss) from continuing operations  $172   $172   $(2,522)  $(2,522)
Less dividends:                    
Common stock   647    647    641    641 
Class B common stock   116    116    116    116 
Undistributed losses  $(591)  $(591)  $(3,279)  $(3,279)
Common stock undistributed losses  $(501)  $(501)  $(2,779)  $(2,779)
Class B common stock undistributed losses   (90)   (90)   (500)   (500)
Total undistributed losses  $(591)  $(591)  $(3,279)  $(3,279)
Income from discontinued operations  $1,496   $1,496   $—   $— 
Less dividends:                    
Common stock   647    647    —    — 
Class B common stock   116    116    —    — 
Undistributed earnings  $733   $733   $—   $— 
Common stock undistributed earnings  $622   $622    —    — 
Class B common stock undistributed earnings   111    111    —    — 
Total undistributed earnings  $733   $733   $—   $— 
Net income (loss)  $1,668   $1,668   $(2,522)  $(2,522)
Less dividends:                    
Common stock   647    647    641    641 
Class B common stock   116    116    116    116 
Undistributed earnings (losses)  $905   $905   $(3,279)  $(3,279)
Common stock undistributed earnings (losses)  $768   $768   $(2,779)  $(2,779)
Class B common stock undistributed earnings (losses)   137    137    (500)   (500)
Total undistributed earnings (losses)  $905   $905   $(3,279)  $(3,279)
Denominator for basic and diluted EPS:                    
Common stock weighted average shares   10,755    10,755    10,703    10,703 
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS   2,137    2,137    2,141    2,141 
Effect of dilutive securities                    
Dilutive stock options        34         — 
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions        12,926         12,844 
Income (loss) from continuing operations per share:                    
Common stock  $0.01   $0.01   $(0.20)  $(0.20)
Class B common stock  $0.01   $0.01   $(0.18)  $(0.18)
Income from discontinued operations per share:                    
Common stock  $0.12   $0.12   $—   $— 
Class B common stock  $0.11   $0.11   $—   $— 
Net income (loss) per share:                    
Common stock  $0.13   $0.13   $(0.20)  $(0.20)
Class B common stock  $0.12   $0.12   $(0.18)  $(0.18)

 

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the second quarter of fiscal 2017 was 893.

  

  

Six Months Ended

 
   December 2, 2017   November 26, 2016 
   Basic   Diluted   Basic   Diluted 
Numerator for Basic and Diluted EPS:                    
Income (loss) from continuing operations  $60   $60   $(5,372)  $(5,372)
Less dividends:                    
Common stock   1,290    1,290    1,283    1,283 
Class B common stock   231    231    232    232 
Undistributed losses  $(1,461)  $(1,461)  $(6,887)  $(6,887)
Common stock undistributed losses  $(1,239)  $(1,239)  $(5,836)  $(5,836)
Class B common stock undistributed losses   (222)   (222)   (1,051)   (1,051)
Total undistributed losses  $(1,461)  $(1,461)  $(6,887)  $(6,887)
Income from discontinued operations  $1,496   $1,496   $—   $— 
Less dividends:                    
Common stock   1,290    1,290    —    — 
Class B common stock   231    231    —    — 
Undistributed losses  $(25)  $(25)  $—   $— 
Common stock undistributed losses  $(21)  $(21)  $—   $— 
Class B common stock undistributed losses   (4)   (4)   —    — 
Total undistributed losses  $(25)  $(25)  $—   $— 
Net income (loss)  $1,556   $1,556   $(5,372)  $(5,372)
Less dividends:                    
Common stock   1,290    1,290    1,283    1,283 
Class B common stock   231    231    232    232 
Undistributed earnings (losses)  $35   $35   $(6,887)  $(6,887)
Common stock undistributed earnings (losses)  $30   $30   $(5,836)  $(5,836)
Class B common stock undistributed earnings (losses)   5    5    (1,051)   (1,051)
Total undistributed earnings (losses)  $35   $35   $(6,887)  $(6,887)
Denominator for basic and diluted EPS:                    
Common stock weighted average shares   10,734    10,734    10,703    10,703 
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS   2,137    2,137    2,141    2,141 
Effect of dilutive securities                    
Dilutive stock options        30         — 
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions        12,901         12,844 
Income (loss) from continuing operations per share:                    
Common stock  $—   $—   $(0.43)  $(0.43)
Class B common stock  $—   $—   $(0.38)  $(0.38)
Income from discontinued operations per share:                    
Common stock  $0.12   $0.12   $—   $— 
Class B common stock  $0.11   $0.11   $—   $— 
Net income (loss) per share:                    
Common stock  $0.12   $0.12   $(0.43)  $(0.43)
Class B common stock  $0.11   $0.11   $(0.38)  $(0.38)
                     

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first six months of fiscal 2017 was 893.