3. Net Income (loss) Per Share

3 Months Ended

Oct. 26, 2013

Notes

3. Net Income (loss) Per Share

3. NET INCOME (LOSS) PER SHARE

The Company computes net income (loss) per share using the two-class method, an earnings allocation formula that calculates basic and diluted net income (loss) per share for each class of common stock separately based on dividends declared and participation rights in undistributed earnings.  Under the two-class method, our Class A common stock is assumed to receive a 54% greater participation in undistributed earnings (losses) than our Class B common stock, in accordance with the classes respective dividend rights.   

            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 shares of 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 utilizing 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 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
	13 Weeks Ended
	October 27, 2012
	Class A	Class B
Numerator:
Net income allocated, basic	$           3,932	$           1,776
Conversion of Class B to Class A shares	1,776	-
Effect of share-based compensation on allocated net income	11	(11)
Net income allocated, diluted	$           5,719	$           1,765
Denominator:
Weighted average shares outstanding, basic	7,549	5,913
Conversion of Class B to Class A shares	5,913	-
Dilutive effect of share-based compensation	129	-
Weighted average shares outstanding, diluted	13,591	5,913

As a result of the net loss in the fiscal quarter ended October 26, 2013, all outstanding stock options and restricted Class A shares were excluded from the October 26, 2013 diluted net income (loss) per share calculation due to their anti-dilutive effect. A total of 299 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 at October 27, 2012 due to their anti-dilutive effect.