Earnings (Loss) per Share

3 Months Ended

Jul. 27, 2013

Earnings (Loss) per Share

(5) Earnings (Loss) per Share

In accordance with ASC 260-10-45, Share-Based Payment Arrangements and Participating Securities and the Two-Class Method, the Company’s unvested restricted shares, unvested restricted stock units and shares issuable under the Company’s deferred compensation plan are considered participating securities. During periods of net income, the calculation of earnings per share for common stock are reclassified to exclude the income attributable to unvested restricted shares, unvested restricted stock units and shares issuable under the Company’s deferred compensation plan from the numerator and exclude the dilutive impact of those shares from the denominator.

During periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company. Due to the net loss during the 13 weeks ended July 27, 2013 and July 28, 2012, participating securities in the amount of 3,029,449 and 2,921,248, respectively, were excluded from the calculation of loss per share using the two-class method because the effect would be antidilutive. The Company’s outstanding stock options were also excluded from the calculation of loss per share using the two-class method because the effect would be antidilutive.

The following is a reconciliation of the Company’s basic and diluted loss per share calculation:

	13 weeks ended
	July 27, 2013			July 28, 2012
Numerator for basic income (loss) per share:
Net loss	$	(87,022	)		(39,828	)
Preferred stock dividends		(3,942	)		(3,942	)
Accretion of dividends on preferred stock		(758	)		(316	)
Net loss available to common shareholders	$	(91,722	)		(44,086	)
Numerator for diluted income (loss) per share:
Net loss available to common shareholders	$	(91,722	)		(44,086	)
Denominator for basic and diluted loss per share:
Basic weighted average common shares		58,768			58,021
Loss per common share:
Basic	$	(1.56	)		(0.76	)
Diluted	$	(1.56	)		(0.76	)