NOTE 10 Earnings Per Share

Basic earnings per common share is computed based on the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed based on the combination of dilutive common share equivalents, comprised of shares issuable under the Corporation’s Stock Incentive Plan and the weighted-average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money options to purchase shares, which is calculated based on the average share price for each period using the treasury stock method.

The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except per share amounts):


	Three-Months Ended					Six-Months Ended
	December 3, 2017		November 30, 2016			December 3, 2017		November 30, 2016
	(Unaudited)
Net income (loss)	$	2,964	$	(595	)	$	4,571	$	149

Weighted average share outstanding:
Basic		8,391,244		8,391,244			8,391,244		8,391,244
Common stock equivalents— treasury stock method		171,655		—			139,947		121,659

Diluted		8,562,899		8,391,244			8,531,191		8,512,903
Net income (loss) per share:
Basic	$	.35	$	(.07	)	$	.54	$	.02

Diluted	$	.35	$	(.07	)	$	.54	$	.02

There were 23,417 and 139,532 anti-dilutive common stock equivalents excluded from the computation of diluted earnings per share for the three-months ended December 3, 2017 and November 30, 2016, respectively. There were 46,168 and 8,727 anti-dilutive common stock equivalents excluded from the computation of diluted earnings per share for the six-months ended December 3, 2017 and November 30, 2016.