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Common Stock And Calculation Of Earnings Per Common Share
9 Months Ended
Jun. 25, 2011
Common Stock And Calculation Of Earnings Per Common Share  
Common Stock And Calculation Of Earnings Per Common Share

I. COMMON STOCK AND CALCULATION OF EARNINGS PER COMMON SHARE

The Company has two classes of common stock: Class A which is publicly traded, and Class B, which has no public market. The Class B Common Stock has restrictions on transfer; however, each share is convertible into one share of Class A Common Stock at any time. Each share of Class A Common Stock has one vote per share and each share of Class B Common Stock has ten votes per share. Each share of Class A Common Stock is entitled to receive cash dividends equal to 110% of any cash dividend paid on Class B Common Stock.

The Company calculates earnings per share for its Class A Common Stock and Class B Common Stock in accordance with FASB ASC Topic 260.

The two-class method of computing basic earnings per share for each period reflects the cash dividends paid per share for each class of stock, plus the amount of allocated undistributed earnings per share computed using the participation percentage which reflects the dividend rights of each class of stock. Diluted earnings per share is calculated assuming conversion of all shares of Class B Common Stock to shares of Class A Common Stock on a share-for-share basis. The tables below reconcile the numerators and denominators of basic and diluted earnings per share for current and prior periods.

 

     Three Months Ended
June 25, 2011
     Nine Months Ended
June 25, 2011
 
     Class A      Class B      Class A      Class B  

Numerator: Allocated net income

           

Net income allocated, basic

   $ 7,015,699       $ 5,708,991       $ 15,480,872       $ 12,618,024   

Conversion of Class B to Class A shares

     5,708,991         —           12,618,024         —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income allocated, diluted

   $ 12,724,690       $ 5,708,991       $ 28,098,896       $ 12,618,024   
  

 

 

    

 

 

    

 

 

    

 

 

 

Denominator: Weighted average shares outstanding

           

Weighted average shares outstanding, basic

     12,901,080         11,542,179         12,894,032         11,556,875   

Conversion of Class B to Class A shares

     11,542,179         —           11,556,875         —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average shares outstanding, diluted

     24,443,259         11,542,179         24,450,907         11,556,875   
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per share

           

Basic

   $ 0.54       $ 0.49       $ 1.20       $ 1.09   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

   $ 0.52       $ 0.49       $ 1.15       $ 1.09   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

The per share amounts for the third quarter of fiscal 2010 and the nine months ended June 26, 2010 are based on the following amounts:

 

     Three Months Ended
June 26, 2010
     Nine Months Ended
June 26, 2010
 
     Class A      Class B      Class A      Class B  

Numerator: Allocated net income

           

Net income allocated, basic

   $ 6,298,765       $ 5,146,187       $ 12,430,408       $ 10,178,081   

Conversion of Class B to Class A shares

     5,146,187         —           10,178,081         —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income allocated, diluted

   $ 11,444,952       $ 5,146,187       $ 22,608,489       $ 10,178,081   
  

 

 

    

 

 

    

 

 

    

 

 

 

Denominator: Weighted average shares outstanding

           

Weighted average shares outstanding, basic

     12,888,707         11,583,552         12,888,641         11,607,794   

Conversion of Class B to Class A shares

     11,583,552         —           11,607,794         —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average shares outstanding, diluted

     24,472,259         11,583,552         24,496,435         11,607,794   
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per share

           

Basic

   $ 0.49       $ 0.44       $ 0.97       $ 0.88   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

   $ 0.46       $ 0.44       $ 0.92       $ 0.88