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Earnings Per Share
 9 Months Ended
Jun. 01, 2013
Earnings Per Share [Abstract]  
Earnings Per Share

 

NOTE 9 – 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 or loss 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.  Prior to the collection of the management stock loans in the second quarter of fiscal 2013, the 3.3 million management common stock loan shares held in escrow were included in our basic EPS calculation during periods of net income and were excluded from the basic EPS calculation in periods of net loss because they were determined to be participating securities and continued to have equivalent common stock dividend rights.  These shares were not outstanding during the quarter ended June 1, 2013 and the number of common shares outstanding declined substantially compared with prior fiscal quarters.

 

The following table presents the computation of our EPS for the periods indicated (in thousands, except per share amounts).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Three Quarters Ended

 

 

June 1,

 

 

May 26,

 

 

June 1,

 

 

May 26,

 

 

2013

 

 

2012

 

 

2013

 

 

2012

Numerator for basic and

 

 

 

 

 

 

 

 

 

 

 

diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

$
3,527 

 

$
2,783 

 

$
10,888 

 

$
8,016 

Provision for income taxes

 
(1,416)

 

 
(1,166)

 

 
(4,289)

 

 
(3,575)

Net income

$
2,111 

 

$
1,617 

 

$
6,599 

 

$
4,441 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator for basic and

 

 

 

 

 

 

 

 

 

 

 

diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares

 

 

 

 

 

 

 

 

 

 

 

outstanding(1)

 
16,330 

 

 
17,797 

 

 
17,680 

 

 
17,765 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

Stock options and other

 

 

 

 

 

 

 

 

 

 

 

share-based awards

 
91 

 

 
10 

 

 
80 

 

 
22 

Common stock warrants

 

 -

 

 
509 

 

 
709 

 

 
413 

Diluted weighted average

 

 

 

 

 

 

 

 

 

 

 

shares outstanding

 
16,421 

 

 
18,316 

 

 
18,469 

 

 
18,200 

 

 

 

 

 

 

 

 

 

 

 

 

EPS Calculations:

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

$
0.13 

 

$
0.09 

 

$
0.37 

 

$
0.25 

Diluted

 
0.13 

 

 
0.09 

 

 
0.36 

 

 
0.24 

 

(1) Since we recognized net income for all of the periods presented in this report, basic weighted average shares for the three quarters ended June 1, 2013 (for the period outstanding) and for the quarter and three quarters ended May 26, 2012 include 3.3 million shares of common stock held by management stock loan participants that were placed in escrow.

 

At June 1, 2013 and May  26, 2012, we had approximately 0.2 million and 0.7 million stock options outstanding that were not included in the computation of diluted EPS because the options’ exercise prices were greater than the average market price of our common shares for the respective periods.  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.