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 are based on the following amounts (in thousands, except per share amounts):


	Three Months Ended
	March 3, 2012						February 26, 2011
	Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted EPS:
Income from continuing operations	$	1,591		$	1,591		$	230		$	230
Less dividends:
Common stock		698			698			304			304
Class B common stock		132			132			55			55

Undistributed earnings (losses)	$	761		$	761		$	(129	)	$	(129	)

Common stock undistributed earnings (losses)	$	640		$	640		$	(109	)	$	(110	)
Class B common stock undistributed earnings (losses)		121			121			(20	)		(19	)

Total undistributed earnings (losses)	$	761		$	761		$	(129	)	$	(129	)


Income (loss) from discontinued operations	$	(252	)	$	(252	)	$	7,987		$	7,987
Less dividends:
Common stock		698			698			304			304
Class B common stock		132			132			55			55

Undistributed earnings (losses)	$	(1,082	)	$	(1,082	)	$	7,628		$	7,628

Common stock undistributed earnings (losses)	$	(909	)	$	(911	)	$	6,469		$	6,493
Class B common stock undistributed earnings (losses)		(173	)		(171	)		1,159			1,135

Total undistributed earnings (losses)	$	(1,082	)	$	(1,082	)	$	7,628		$	7,628


Net income	$	1,339		$	1,339		$	8,217		$	8,217
Less dividends:
Common stock		698			698			304			304
Class B common stock		132			132			55			55

Undistributed earnings	$	509		$	509		$	7,858		$	7,858

Common stock undistributed earnings	$	428		$	428		$	6,664		$	6,689
Class B common stock undistributed earnings		81			81			1,194			1,169

Total undistributed earnings	$	509		$	509		$	7,858		$	7,858

Denominator for basic and diluted EPS:
Common stock weighted average shares		13,988			13,988			15,086			15,086

Class B common stock weighted average shares, and shares under if-converted method for diluted EPS		2,940			2,940			3,002			3,002

Effect of dilutive securities Dilutive stock options					122						367
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions					17,050						18,455

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	$	(0.02	)	$	(0.01	)	$	0.45		$	0.43

Class B common stock	$	(0.01	)	$	(0.01	)	$	0.40		$	0.40

Net income per share:
Common stock	$	0.08		$	0.08		$	0.46		$	0.44

Class B common stock	$	0.08		$	0.08		$	0.41		$	0.41

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the third quarter of

fiscal 2012 and fiscal 2011 were 274,564 and 43,564, respectively.


	Nine Months Ended
	March 3, 2011						February 26, 2011
	Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted EPS:
Income from continuing operations	$	4,249		$	4,249		$	850		$	850
Less dividends:
Common stock		2,111			2,111			893			893
Class B common stock		397			397			164			164

Undistributed earnings (losses)	$	1,741		$	1,741		$	(207	)	$	(207	)

Common stock undistributed earnings (losses)	$	1,466		$	1,468		$	(175	)	$	(175	)
Class B common stock undistributed earnings (losses)		275			273			(32	)		(32	)

Total undistributed earnings (losses)	$	1,741		$	1,741		$	(207	)	$	(207	)


Income from discontinued operations	$	1,551		$	1,551		$	23,202		$	23,202
Less dividends:
Common stock		2,111			2,111			893			893
Class B common stock		397			397			164			164

Undistributed earnings (losses)	$	(957	)	$	(957	)	$	22,145		$	22,145

Common stock undistributed earnings (losses)	$	(806	)	$	(807	)	$	18,712		$	18,772
Class B common stock undistributed earnings (losses)		(151	)		(150	)		3,433			3,373

Total undistributed earnings (losses)	$	(957	)	$	(957	)	$	22,145		$	22,145


Net income	$	5,800		$	5,800		$	24,052		$	24,052
Less dividends:
Common stock		2,111			2,111			893			893
Class B common stock		397			397			164			164

Undistributed earnings	$	3,292		$	3,292		$	22,995		$	22,995

Common stock undistributed earnings	$	2,771		$	2,776		$	19,431		$	19,492
Class B common stock undistributed earnings		521			516			3,564			3,503

Total undistributed earnings	$	3,292		$	3,292		$	22,995		$	22,995

Denominator for basic and diluted EPS:
Common stock weighted average shares		14,134			14,134			14,846			14,846

Class B common stock weighted average shares, and shares under if-converted method for diluted EPS		2,944			2,944			3,026			3,026

Effect of dilutive securities Dilutive stock options					166						310
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions					17,244						18,182

Income from continuing operations per share:
Common stock	$	0.25		$	0.25		$	0.05		$	0.05

Class B common stock	$	0.23		$	0.23		$	0.04		$	0.04

Income from discontinued operations per share:
Common stock	$	0.09		$	0.09		$	1.32		$	1.28

Class B common stock	$	0.08		$	0.08		$	1.19		$	1.17

Net income per share:
Common stock	$	0.34		$	0.34		$	1.37		$	1.33

Class B common stock	$	0.31		$	0.31		$	1.23		$	1.21

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first nine months of fiscal 2012 and fiscal 2011 were 161,000 and 153,564, respectively.