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


	Three Months Ended
	December 1, 2012						December 3, 2011
	Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted EPS:
Income from continuing operations	$	581		$	581		$	1,629		$	1,629
Less dividends:
Common stock		737			737			699			699
Class B common stock		148			148			133			133

Undistributed earnings (losses)	$	(304	)	$	(304	)	$	797		$	797

Common stock undistributed earnings (losses)	$	(253	)	$	(253	)	$	671		$	672
Class B common stock undistributed earnings (losses)		(51	)		(51	)		126			125

Total undistributed earnings (losses)	$	(304	)	$	(304	)	$	797		$	797

Income (loss) from discontinued operations	$	(203	)	$	(203	)	$	(799	)	$	(799	)
Less dividends:
Common stock		737			737			699			699
Class B common stock		148			148			133			133

Undistributed earnings (losses)	$	(1,088	)	$	(1,088	)	$	(1,631	)	$	(1,631	)

Common stock undistributed earnings (losses)	$	(904	)	$	(905	)	$	(1,373	)	$	(1,375	)
Class B common stock undistributed earnings (losses)		(184	)		(183	)		(258	)		(256	)

Total undistributed earnings (losses)	$	(1,088	)	$	(1,088	)	$	(1,631	)	$	(1,631	)

Net income	$	378		$	378		$	830		$	830
Less dividends:
Common stock		737			737			699			699
Class B common stock		148			148			133			133

Undistributed earnings (losses)	$	(507	)	$	(507	)	$	(2	)	$	(2	)

Common stock undistributed earnings (losses)	$	(421	)	$	(422	)	$	(2	)	$	(2	)
Class B common stock undistributed earnings (losses)		(86	)		(85	)		—			—

Total undistributed earnings (losses)	$	(507	)	$	(507	)	$	(2	)	$	(2	)

Denominator for basic and diluted EPS:
Common stock weighted average shares		12,437			12,437			14,069			14,069

Class B common stock weighted average shares, and shares under if-converted method for diluted EPS		2,812			2,812			2,940			2,940

Effect of dilutive securities Dilutive stock options					96						152
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions					15,345						17,161

Income from continuing operations per share:
Common stock	$	0.04		$	0.04		$	0.10		$	0.09

Class B common stock	$	0.03		$	0.03		$	0.09		$	0.09

Income (loss) from discontinued operations per share:
Common stock	$	(0.01	)	$	(0.01	)	$	(0.05	)	$	(0.05	)

Class B common stock	$	(0.01	)	$	(0.01	)	$	(0.04	)	$	(0.04	)

Net income per share:
Common stock	$	0.03		$	0.03		$	0.05		$	0.04

Class B common stock	$	0.02		$	0.02		$	0.05		$	0.05

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the second quarter of fiscal 2013 and fiscal 2012 were 477,064 and 183,500, respectively.


	Six Months Ended
	December 1, 2012						December 3, 2011
	Basic			Diluted			Basic		Diluted
Numerator for Basic and Diluted EPS:
Income from continuing operations	$	1,315		$	1,315		$	2,658	$	2,658
Less dividends:
Common stock		1,495			1,495			1,413		1,413
Class B common stock		304			304			265		265

Undistributed earnings (losses)	$	(484	)	$	(484	)	$	980	$	980

Common stock undistributed earnings (losses)	$	(402	)	$	(402	)	$	826	$	827
Class B common stock undistributed earnings (losses)		(82	)		(82	)		154		153

Total undistributed earnings (losses)	$	(484	)	$	(484	)	$	980	$	980

Income (loss) from discontinued operations	$	(290	)	$	(290	)	$	1,803	$	1,803
Less dividends:
Common stock		1,495			1,495			1,413		1,413
Class B common stock		304			304			265		265

Undistributed earnings (losses)	$	(2,089	)	$	(2,089	)	$	125	$	125

Common stock undistributed earnings (losses)	$	(1,734	)	$	(1,737	)	$	105	$	106
Class B common stock undistributed earnings (losses)		(355	)		(352	)		20		19

Total undistributed earnings (losses)	$	(2,089	)	$	(2,089	)	$	125	$	125

Net income	$	1,025		$	1,025		$	4,461	$	4,461
Less dividends:
Common stock		1,495			1,495			1,413		1,413
Class B common stock		304			304			265		265

Undistributed earnings (losses)	$	(774	)	$	(774	)	$	2,783	$	2,783

Common stock undistributed earnings (losses)	$	(643	)	$	(643	)	$	2,345	$	2,350
Class B common stock undistributed earnings (losses)		(131	)		(131	)		438		433

Total undistributed earnings (losses)	$	(774	)	$	(774	)	$	2,783	$	2,783

Denominator for basic and diluted EPS:
Common stock weighted average shares		12,604			12,604			14,206		14,206

Class B common stock weighted average shares,and shares under if-converted method for diluted EPS		2,863			2,863			2,946		2,946

Effect of dilutive securities Dilutive stock options					100					167
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions					15,567					17,319

Income from continuing operations per share:
Common stock	$	0.09		$	0.08		$	0.16	$	0.15

Class B common stock	$	0.08		$	0.08		$	0.14	$	0.14

Income (loss) from discontinued operations per share:
Common stock	$	(0.02	)	$	(0.02	)	$	0.11	$	0.10

Class B common stock	$	(0.02	)	$	(0.02	)	$	0.10	$	0.10

Net income per share:
Common stock	$	0.07		$	0.06		$	0.27	$	0.25

Class B common stock	$	0.06		$	0.06		$	0.24	$	0.24

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first six months of fiscal 2013 and fiscal 2012 were 267,564 and 25,000, respectively.