NET INCOME (LOSS) PER SHARE

The Company has two classes of common stock. Class A common stock is entitled to cash dividends as declared 54% greater than those paid on Class B common stock. Shares of Class B common stock are convertible on a share-for-share basis for Class A common stock at any time.

The Company utilizes the two-class method of computing and presenting net income (loss) per share. The two-class method is an earnings allocation formula that calculates basic and diluted net income per share for each class of common stock separately based on dividends declared and participation rights in undistributed earnings. Under the two-class method, Class A common stock is assumed to receive a 54% greater participation in undistributed earnings than Class B common stock, in accordance with the classes respective dividend rights. Unvested share-based payment awards that contain nonforfeitable rights to dividends are treated as participating securities and therefore included in computing net income per share using the two-class method.

Diluted net income per share for Class A common stock is calculated utilizing the if-converted method, which assumes the conversion of all shares of Class B common stock to Class A common stock on a share-for- share basis, as this method is more dilutive than the two-class method. Diluted net loss per share for Class A common stock is calculated using the two class method and does not assume conversion of Class B common stock to shares of Class A common stock as a result of its anti-dilutive effect. Diluted net income (loss) per share for Class B common stock does not assume conversion of Class B common stock to shares of Class A common stock.

The tables below reconcile the numerators and denominators of basic and diluted net income (loss) per share for all periods presented.



	13 Weeks Ended October 25, 2014
	Class A			Class B
Numerator:
Net income allocated, basic	$	2,912		$	877
Conversion of Class B to Class A shares	877			—
Effect of share-based compensation on allocated net income	2			—
Net income allocated, diluted	$	3,791		$	877

Denominator:
Weighted average shares outstanding, basic	9,409			4,361
Conversion of Class B to Class A shares	4,361			—
Dilutive effect of share-based compensation	19			—
Weighted average shares outstanding, diluted	13,789			4,361

	13 Weeks Ended October 26, 2013
	Class A			Class B
Numerator:
Net loss allocated, basic	$	(5,064	)	$	(1,601	)
Conversion of Class B to Class A shares	—			—
Effect of share-based compensation on allocated net loss	—			—
Net loss allocated, diluted	$	(5,064	)	$	(1,601	)

Denominator:
Weighted average shares outstanding, basic	9,136			4,413
Conversion of Class B to Class A shares	—			—
Dilutive effect of share-based compensation	—			—
Weighted average shares outstanding, diluted	9,136			4,413

Outstanding stock options to purchase Class A shares of 545 were excluded from the calculation of diluted net income per share for the thirteen weeks ended October 25, 2014 as a result of their anti-dilutive effect. In addition, 290 non-vested restricted Class A shares, which are considered participating securities, and their allocated net income were excluded from the diluted net income per share calculation for the thirteen weeks ended October 25, 2014 due to their anti-dilutive effect.

As a result of the net loss in the thirteen weeks ended October 26, 2013, all outstanding stock options and restricted Class A shares were excluded from the diluted net loss per share calculation for the thirteen weeks ended October 26, 2013 due to their anti-dilutive effect.