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Calculation of Earnings Per Share
 9 Months Ended
Feb. 26, 2022
Earnings Per Share [Abstract]  
Calculation of Earnings Per Share

6.  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 common stock cash dividends.

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. 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 common stock cash dividends.

The earnings per share (“EPS”) presented in our unaudited consolidated statements of comprehensive income were based on the following amounts (in thousands, except per share amounts):

 

 

Three Months Ended

 

 

 

February 26, 2022

 

 

February 27, 2021

 

 

 

Basic

 

 

Diluted

 

 

Basic

 

 

Diluted

 

Numerator for Basic and Diluted EPS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

2,887

 

 

$

2,887

 

 

$

228

 

 

$

228

 

Less dividends:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

695

 

 

 

695

 

 

 

667

 

 

 

667

 

Class B common stock

 

 

111

 

 

 

111

 

 

 

113

 

 

 

113

 

Undistributed earnings (loss)

 

$

2,081

 

 

$

2,081

 

 

$

(552

)

 

$

(552

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock undistributed earnings (loss)

 

$

1,790

 

 

$

1,801

 

 

$

(472

)

 

$

(472

)

Class B common stock undistributed earnings (loss)

 

 

291

 

 

 

280

 

 

 

(80

)

 

 

(80

)

Total undistributed earnings (loss)

 

$

2,081

 

 

$

2,081

 

 

$

(552

)

 

$

(552

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator for Basic and Diluted EPS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock weighted average shares

 

 

11,497

 

 

 

11,497

 

 

 

11,111

 

 

 

11,111

 

Effect of dilutive securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Dilutive stock options

 

 

 

 

 

 

530

 

 

 

 

 

 

 

72

 

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

 

 

 

 

 

 

12,027

 

 

 

 

 

 

 

11,183

 

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

 

 

2,074

 

 

 

2,074

 

 

 

2,097

 

 

 

2,097

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

$

0.22

 

 

$

0.21

 

 

$

0.02

 

 

$

0.02

 

Class B common stock

 

$

0.19

 

 

$

0.19

 

 

$

0.02

 

 

$

0.02

 

Note: There were no common stock options that were antidilutive in the third quarter of fiscal 2022 and fiscal 2021.

 

 

Nine Months Ended

 

 

 

February 26, 2022

 

 

February 27, 2021

 

 

 

Basic

 

 

Diluted

 

 

Basic

 

 

Diluted

 

Numerator for Basic and Diluted EPS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

9,644

 

 

$

9,644

 

 

$

(230

)

 

$

(230

)

Less dividends:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

2,047

 

 

 

2,047

 

 

 

2,000

 

 

 

2,000

 

Class B common stock

 

 

337

 

 

 

337

 

 

 

340

 

 

 

340

 

Undistributed earnings (loss)

 

$

7,260

 

 

$

7,260

 

 

$

(2,570

)

 

$

(2,570

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock undistributed earnings (loss)

 

$

6,226

 

 

$

6,257

 

 

$

(2,196

)

 

$

(2,196

)

Class B common stock undistributed earnings (loss)

 

 

1,034

 

 

 

1,003

 

 

 

(374

)

 

 

(374

)

Total undistributed earnings (loss)

 

$

7,260

 

 

$

7,260

 

 

$

(2,570

)

 

$

(2,570

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator for Basic and Diluted EPS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock weighted average shares

 

 

11,320

 

 

 

11,320

 

 

 

11,097

 

 

 

11,097

 

Effect of dilutive securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Dilutive stock options

 

 

 

 

 

 

404

 

 

 

 

 

 

 

—

 

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

 

 

 

 

 

 

11,724

 

 

 

 

 

 

 

11,097

 

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

 

 

2,089

 

 

 

2,089

 

 

 

2,097

 

 

 

2,097

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

$

0.73

 

 

$

0.71

 

 

$

(0.02

)

 

$

(0.02

)

Class B common stock

 

$

0.66

 

 

$

0.64

 

 

$

(0.02

)

 

$

(0.02

)

Note: There were no common stock options that were antidilutive in the first nine months of fiscal 2022. Common stock options that were anti-dilutive and not included in the diluted earnings per common share for the first nine months of fiscal 2021 were 1,300.