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					Nine-Months Ended
	March 4,		February 28,			March 4,		February 28,
	2018		2017			2018		2017
	(Unaudited)
Net income (loss)	$	1,218	$	(2,447	)	$	5,789	$	(2,298	)

Weighted average share outstanding:
Basic		8,391,244		8,391,244			8,391,244		8,391,244
Common stock equivalents - treasury stock method		236,088		—			182,902		—

Diluted		8,627,332		8,391,244			8,574,146		8,391,244
Net income (loss) per share:
Basic	$	.15	$	(.29	)	$	.69	$	(.27	)

Diluted	$	.14	$	(.29	)	$	.68	$	(.27	)

There were 4,234 and 175,484 anti-dilutive common stock equivalents excluded from the computation of diluted earnings per share for the three-months ended March 4, 2018 and February 28, 2017, respectively. There were 21,413 and 161,368 anti-dilutive common stock equivalents excluded from the computation of diluted earnings per share for the nine-months ended March 4, 2018 and February 28, 2017.