XML 28 R17.htm IDEA: XBRL DOCUMENT v3.21.1
Calculation of Earnings Per Share
 9 Months Ended
Feb. 27, 2021
Earnings Per Share [Abstract]  
Calculation of Earnings Per Share

10.  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) were based on the following amounts (in thousands, except per share amounts):

 

 

 

Three Months Ended

 

 

 

February 27, 2021

 

 

February 29, 2020

 

 

 

Basic

 

 

Diluted

 

 

Basic

 

 

Diluted

 

Numerator for Basic and Diluted EPS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

228

 

 

$

228

 

 

$

(93

)

 

$

(93

)

Less dividends:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

667

 

 

 

667

 

 

 

662

 

 

 

662

 

Class B common stock

 

 

113

 

 

 

113

 

 

 

114

 

 

 

114

 

Undistributed losses

 

$

(552

)

 

$

(552

)

 

$

(869

)

 

$

(869

)

Common stock undistributed losses

 

$

(472

)

 

$

(472

)

 

$

(742

)

 

$

(742

)

Class B common stock undistributed losses

 

 

(80

)

 

 

(80

)

 

 

(127

)

 

 

(127

)

Total undistributed losses

 

$

(552

)

 

$

(552

)

 

$

(869

)

 

$

(869

)

Denominator for Basic and Diluted EPS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock weighted average shares

 

 

11,111

 

 

 

11,111

 

 

 

11,038

 

 

 

11,038

 

Class B common stock weighted average shares and

   shares under if-converted method for diluted EPS

 

 

2,097

 

 

 

2,097

 

 

 

2,097

 

 

 

2,097

 

Effect of dilutive securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive stock options

 

 

 

 

 

 

72

 

 

 

 

 

 

 

—

 

Denominator for diluted EPS adjusted for weighted

   average shares and assumed conversions

 

 

 

 

 

 

13,280

 

 

 

 

 

 

 

13,135

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

$

0.02

 

 

$

0.02

 

 

$

(0.01

)

 

$

(0.01

)

Class B common stock

 

$

0.02

 

 

$

0.02

 

 

$

(0.01

)

 

$

(0.01

)

 

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the third quarter of fiscal 2020 were 1,000.

 

 

 

 

Nine Months Ended

 

 

 

February 27, 2021

 

 

February 29, 2020

 

 

 

Basic

 

 

Diluted

 

 

Basic

 

 

Diluted

 

Numerator for Basic and Diluted EPS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(230

)

 

$

(230

)

 

$

(558

)

 

$

(558

)

Less dividends:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

2,000

 

 

 

2,000

 

 

 

1,986

 

 

 

1,986

 

Class B common stock

 

 

340

 

 

 

340

 

 

 

340

 

 

 

340

 

Undistributed losses

 

$

(2,570

)

 

$

(2,570

)

 

$

(2,884

)

 

$

(2,884

)

Common stock undistributed losses

 

$

(2,196

)

 

$

(2,196

)

 

$

(2,462

)

 

$

(2,462

)

Class B common stock undistributed losses

 

 

(374

)

 

 

(374

)

 

 

(422

)

 

 

(422

)

Total undistributed losses

 

$

(2,570

)

 

$

(2,570

)

 

$

(2,884

)

 

$

(2,884

)

Denominator for Basic and Diluted EPS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock weighted average shares

 

 

11,097

 

 

 

11,097

 

 

 

11,022

 

 

 

11,022

 

Class B common stock weighted average shares and

   shares under if-converted method for diluted EPS

 

 

2,097

 

 

 

2,097

 

 

 

2,097

 

 

 

2,097

 

Effect of dilutive securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive stock options

 

 

 

 

 

 

—

 

 

 

 

 

 

 

—

 

Denominator for diluted EPS adjusted for weighted

   average shares and assumed conversions

 

 

 

 

 

 

13,194

 

 

 

 

 

 

 

13,119

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

$

(0.02

)

 

$

(0.02

)

 

$

(0.04

)

 

$

(0.04

)

Class B common stock

 

$

(0.02

)

 

$

(0.02

)

 

$

(0.04

)

 

$

(0.04

)

 

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first nine months of fiscal 2021 and fiscal 2020 were 1,300 and 943, respectively.