Note 7 - Earnings Per Share

3 Months Ended

May 31, 2020

Notes to Financial Statements

Earnings Per Share [Text Block]

7

.

EARNINGS PER SHARE

Basic earnings per share are computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share are computed by dividing net earnings by the sum of (a) the weighted average number of shares of common stock outstanding during the period and (b) the potentially dilutive securities outstanding during the period. Stock options are the only potentially dilutive securities; and the number of dilutive options is computed using the treasury stock method.

The following table sets forth the calculation of basic and diluted earnings per share:

	13 Weeks Ended
	May 31, 2020			June 2, 2019
Net earnings - continuing operations	$	1,972		$	2,714
Net loss - discontinued operations		(15	)		(127	)
Net earnings	$	1,957		$	2,587
Weighted average common shares outstanding for basic EPS		20,402			20,492
Net effect of dilutive options		58			94
Weighted average shares outstanding for diluted EPS		20,460			20,586
Basic earnings per share - continuing operations	$	0.10		$	0.13
Basic earnings per share - discontinued operations	$	-		$	-
Basic earnings per share	$	0.10		$	0.13
Diluted earnings per share - continuing operations	$	0.10		$	0.13
Diluted earnings per share - discontinued operations		-			-
Diluted earnings per share	$	0.10		$	0.13

Potentially dilutive securities, which were

not

included in the computation of diluted earnings per share, because either the effect would have been anti-dilutive or the options’ exercise prices were greater than the average market price of the common stock, were

426,000

and

191,000

for the

13

weeks ended

May 31, 2020

and

June 2, 2019,

respectively.