Earnings Per Share

9 Months Ended

May 26, 2012

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						Three Quarters Ended
	May 26, 2012			May 28, 2011			May 26, 2012			May 28, 2011
Numerator for basic and diluted earnings per share:
Income before income taxes	$	2,783		$	2,195		$	8,016		$	5,789
Income tax provision		(1,166	)		(1,471	)		(3,575	)		(3,966	)
Net income	$	1,617		$	724		$	4,441		$	1,823

Denominator for basic and diluted earnings per share:
Basic weighted average shares outstanding⁽¹⁾		17,797			17,067			17,765			17,030
Effect of dilutive securities:
Stock options and other share- based awards		10			11			22			48
Common stock warrants		509			276			413			204
Diluted weighted average shares outstanding		18,316			17,354			18,200			17,282

EPS Calculations:
Net income per share:
Basic	$	.09		$	.04		$	.25		$	.11
Diluted		.09			.04			.24			.11

(1) Since we recognized net income for the periods 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 May 26, 2012 and May 28, 2011, we had approximately 0.7 million stock options outstanding which were not included in the computation of diluted EPS because the options are considered to be contingently issuable shares that have market vesting conditions which were not met for the periods presented. 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 or when our share-based compensation instruments vest.

- Definition

The entire disclosure for earnings per share.

+ References+ Details