EARNINGS PER SHARE AND STOCK REPURCHASES

3 Months Ended

Sep. 04, 2012

EARNINGS PER SHARE AND STOCK REPURCHASES [Abstract]

EARNINGS PER SHARE AND STOCK REPURCHASES

NOTE B – EARNINGS PER SHARE AND STOCK REPURCHASES

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during each period presented.  Diluted earnings per share gives effect to stock options and restricted stock outstanding during the applicable periods, if dilutive.  The following table reflects the calculation of weighted-average common and dilutive potential common shares outstanding as presented in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income (in thousands):

	Thirteen weeks ended
	September 4, 2012		August 30, 2011
Net income	$	2,599	$	3,093
Weighted-average common shares outstanding		62,813		63,755
Dilutive effect of stock options and restricted stock		143		721
Weighted average common and dilutive potential
common shares outstanding		62,956		64,476
Basic earnings per share	$	0.04	$	0.05
Diluted earnings per share	$	0.04	$	0.05

Stock options with an exercise price greater than the average market price of our common stock and certain options with unrecognized compensation expense do not impact the computation of diluted earnings per share because the effect would be anti-dilutive.  The following table summarizes stock options and restricted shares that did not impact the computation of diluted earnings per share because their inclusion would have had an anti-dilutive effect (in thousands):

	Thirteen weeks ended
	September 4, 2012		August 30, 2011
Stock options		2,068		1,551
Restricted shares		1,105		852
Total		3,173		2,403

During the first quarter of fiscal 2013, we repurchased 0.4 million shares of our common stock at a cost of $2.3 million.  As of September 4, 2012, the total number of remaining shares authorized by our Board of Directors to be repurchased was 5.6 million.  All shares repurchased during the current quarter were cancelled as of September 4, 2012.