3. Net Income (loss) Per Share

6 Months Ended

Jan. 25, 2014

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		26 Weeks Ended
	January 25, 2014
	Class A	Class B	Class A	Class B
Numerator:
Net income (loss) allocated, basic	$2,102	$648	$(2,979)	$(937)
Conversion of Class B to Class A shares	648	-	-	-
Effect of share-based compensation on allocated net income (loss)	(1)	-	-	-
Net income (loss) allocated, diluted	$2,749	$648	$(2,979)	$(937)
Denominator:
Weighted average shares outstanding, basic	9,198	4,361	9,167	4,387
Conversion of Class B to Class A shares	4,361	-	-	-
Dilutive effect of share-based compensation	85	-	-	-
Weighted average shares outstanding, diluted	13,644	4,361	9,167	4,387
	13 Weeks Ended		26 Weeks Ended
	January 26, 2013
	Class A	Class B	Class A	Class B
Numerator:
Net income allocated, basic	$6,373	$2,503	$10,463	$4,123
Conversion of Class B to Class A shares	2,503	-	4,123	-
Effect of share-based compensation on allocated net income	-	-	-	-
Net income allocated, diluted	$8,876	$2,503	$14,586	$4,123
Denominator:
Weighted average shares outstanding, basic	8,396	5,086	7,972	5,500
Conversion of Class B to Class A shares	5,086	-	5,500	-
Dilutive effect of share-based compensation	108	-	118	-
Weighted average shares outstanding, diluted	13,590	5,086	13,590	5,500

Outstanding stock options to purchase Class A shares of 5 and 7 were excluded from the calculation of diluted net income per share at January 25, 2014 and January 26, 2013, respectively, as a result of their anti-dilutive effect.  In addition, 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 both January 25, 2014 and January 26, 2013 due to their anti-dilutive effect. 

As a result of the net loss in the six-month period ended January 25, 2014, all outstanding stock options and restricted Class A shares were excluded from the diluted net loss per share calculation for the six-month period ended January 25, 2014 due to their anti-dilutive effect.