11. CALCULATION OF EARNINGS PER SHARE

We have authorized 30,000,000 shares of common stock, 10,000,000 shares of Class B common stock, and 5,000,000 shares of preferred stock. The Class B common stock has 10 votes per share and has transferability restrictions; however, Class B common stock may be converted into common stock on a share-for-share basis at any time. With respect to dividends and distributions, shares of common stock and Class B common stock rank equally and have the same rights, except that Class B common stock cash dividends are limited to 90% of the amount of Class A common stock cash dividends.

In accordance with ASC 260-10, Earnings Per Share ("ASC 260"), our Class B common stock is considered a participating security requiring the use of the two-class method for the computation of basic and diluted earnings per share. The two-class computation method 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. Basic and diluted earnings per share were computed using the two-class method as prescribed in ASC 260. The shares of Class B common stock are considered to be participating convertible securities since the shares of Class B common stock are convertible on a share-for-share basis into shares of common stock and may participate in dividends with common stock according to a predetermined formula which is 90% of the amount of Class A common stock cash dividends.

The earnings per share ("EPS") presented in our unaudited consolidated statements of income and comprehensive income (loss) are based on the following amounts (in thousands, except per share amounts):


	Three Months Ended
	December 3, 2011						November 27, 2010
	Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted EPS:
Income from continuing operations	$	1,629		$	1,629		$	168		$	168
Less dividends:
Common stock		699			699			297			297
Class B common stock		133			133			55			55

Undistributed earnings (losses)	$	797		$	797		$	(184	)	$	(184	)

Common stock undistributed earnings (losses)	$	671		$	672		$	(155	)	$	(156	)
Class B common stock undistributed earnings (losses)		126			125			(29	)		(28	)

Total undistributed earnings (losses)	$	797		$	797		$	(184	)	$	(184	)


Income (loss) from discontinued operations	$	(799	)	$	(799	)	$	7,291		$	7,291
Less dividends:
Common stock		699			699			297			297
Class B common stock		133			133			55			55

Undistributed earnings (losses)	$	(1,631	)	$	(1,631	)	$	6,939		$	6,939

Common stock undistributed earnings (losses)	$	(1,373	)	$	(1,375	)	$	5,858		$	5,876
Class B common stock undistributed earnings (losses)		(258	)		(256	)		1,081			1,063

Total undistributed earnings (losses)	$	(1,631	)	$	(1,631	)	$	6,939		$	6,939


Net income	$	830		$	830		$	7,459		$	7,459
Less dividends:
Common stock		699			699			297			297
Class B common stock		133			133			55			55

Undistributed earnings (losses)	$	(2	)	$	(2	)	$	7,107		$	7,107

Common stock undistributed earnings (losses)	$	(2	)	$	(2	)	$	6,000		$	6,019
Class B common stock undistributed earnings		—			—			1,107			1,088

Total undistributed earnings (losses)	$	(2	)	$	(2	)	$	7,107		$	7,107


Denominator for basic and diluted EPS:
Common stock weighted average shares		14,069			14,069			14,768			14,768

Class B common stock weighted average shares, and shares under if-converted method for diluted EPS		2,940			2,940			3,028			3,028

Effect of dilutive securities
Dilutive stock options					152						303
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions					17,161						18,099


Income from continuing operations per share:
Common stock	$	0.10		$	0.09		$	0.01		$	0.01

Class B common stock	$	0.09		$	0.09		$	0.01		$	0.01

Income (loss) from discontinued operations per share:
Common stock	$	(0.05	)	$	(0.05	)	$	0.42		$	0.40

Class B common stock	$	(0.04	)	$	(0.04	)	$	0.38		$	0.37

Net income per share:
Common stock	$	0.05		$	0.04		$	0.43		$	0.41

Class B common stock	$	0.05		$	0.05		$	0.39		$	0.38

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the second quarter of fiscal 2012 and fiscal 2011 were 183,500 and 133,564, respectively.


	Six Months Ended
	December 3, 2011				November 27, 2010
	Basic		Diluted		Basic			Diluted
Numerator for Basic and Diluted EPS:
Income from continuing operations	$	2,658	$	2,658	$	621		$	621
Less dividends:
Common stock		1,413		1,413		589			589
Class B common stock		265		265		110			110

Undistributed earnings (losses)	$	980	$	980	$	(78	)	$	(78	)

Common stock undistributed earnings (losses)	$	826	$	827	$	(66	)	$	(66	)
Class B common stock undistributed earnings (losses)		154		153		(12	)		(12	)

Total undistributed earnings (losses)	$	980	$	980	$	(78	)	$	(78	)


Income from discontinued operations	$	1,803	$	1,803	$	15,214		$	15,214
Less dividends:
Common stock		1,413		1,413		589			589
Class B common stock		265		265		110			110

Undistributed earnings	$	125	$	125	$	14,515		$	14,515

Common stock undistributed earnings	$	105	$	106	$	12,242		$	12,274
Class B common stock undistributed earnings		20		19		2,273			2,241

Total undistributed earnings	$	125	$	125	$	14,515		$	14,515


Net income	$	4,461	$	4,461	$	15,835		$	15,835
Less dividends:
Common stock		1,413		1,413		589			589
Class B common stock		265		265		110			110

Undistributed earnings	$	2,783	$	2,783	$	15,136		$	15,136

Common stock undistributed earnings	$	2,345	$	2,350	$	12,766		$	12,799
Class B common stock undistributed earnings		438		433		2,370			2,337

Total undistributed earnings	$	2,783	$	2,783	$	15,136		$	15,136


Denominator for basic and diluted EPS:
Common stock weighted average shares		14,206		14,206		14,725			14,725

Class B common stock weighted average shares, and shares under if-converted method for diluted EPS		2,946		2,946		3,038			3,038

Effect of dilutive securities
Dilutive stock options				167					247
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions				17,319					18,010


Income from continuing operations per share:
Common stock	$	0.16	$	0.15	$	0.04		$	0.03

Class B common stock	$	0.14	$	0.14	$	0.03		$	0.03

Income from discontinued operations per share:
Common stock	$	0.11	$	0.10	$	0.87		$	0.84

Class B common stock	$	0.10	$	0.10	$	0.78		$	0.77

Net income per share:
Common stock	$	0.27	$	0.25	$	0.91		$	0.87

Class B common stock	$	0.24	$	0.24	$	0.81		$	0.80

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first six months of fiscal 2012 and fiscal 2011 were 25,000 and 133,564, respectively.