Note 7 - Earnings Per Share

3 Months Ended

May 28, 2023

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 Company’s 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 28, 2023		May 29, 2022
Net earnings	$	1,854	$	1,910
Weighted average common shares outstanding for basic EPS		20,461		20,458
Net effect of dilutive options		65		46
Weighted average shares outstanding for diluted EPS		20,526		20,504
Basic earnings per share	$	0.09	$	0.09
Diluted earnings per share	$	0.09	$	0.09

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 157,000 and 397,000 for the 13 weeks ended May 28, 2023 and May 29, 2022, respectively.