Earnings Per Share

6 Months Ended

Feb. 25, 2012

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 7 – EARNINGS PER SHARE

Basic earnings per common share (EPS) is calculated by dividing net income or loss by the weighted-average number of common shares outstanding for the period. Diluted EPS is calculated by dividing net income by the weighted-average number of common shares outstanding plus the assumed exercise of all dilutive securities using the treasury stock method or the "if converted" method, as appropriate. Due to modifications to our management stock loan program, we determined that the shares of management stock loan participants that were placed in the escrow account are participating securities because they continue to have equivalent common stock dividend rights. Accordingly, these management stock loan

shares are included in our basic EPS calculation during periods of net income and excluded from the basic EPS calculation in periods of net loss. Our unvested share-based compensation awards are not entitled to participate in dividends until they vest and are excluded from our EPS calculation.

The following table presents the computation of our EPS for the periods indicated (in thousands, except per share amounts):

		Quarter Ended						Two Quarters Ended
		February 25,		February 26,				February 25,		February 26,
		2012			2011			2012			2011
Numerator for basic and diluted
earnings per share:
Income before income taxes	$	2,159		$	852		$	5,233		$	3,595
Income tax provision		(997	)		(547	)		(2,409	)		(2,494	)
Net income	$	1,162		$	305		$	2,824		$	1,101
Denominator for basic and
diluted earnings per share:
Basic weighted average shares
outstanding(1)		17,764			16,990			17,748			17,011
Effect of dilutive securities:
Stock options and other share-
based awards		27			51			29			67
Common stock warrants		496			338			365			169
Diluted weighted average shares
outstanding		18,287			17,379			18,142			17,247
EPS Calculations:
Net income per share:
Basic	$	.07		$	.02		$	.16		$	.06
Diluted		.06			.02			.16			.06

(1) Since we recognized net income for the period presented, our basic weighted average shares for those periods include 3.3 million shares of common stock held by management stock loan participants that were placed in escrow.

At February 25, 2012 and February 26, 2011, we had approximately 0.7 million stock options outstanding which were not included in the computation of diluted EPS because the options' exercise prices were greater than the average market price of our common shares for the respective periods. Although these shares were not included in our calculation of diluted EPS, these stock options, and other dilutive securities, including performance share-based compensation instruments, may have a dilutive effect on our EPS calculation in future periods if the price of our common stock increases.