Earnings Per Share

6 Months Ended

Nov. 30, 2024

9. EARNINGS PER SHARE

We have authorized 17,000,000 shares of common stock and 3,000,000 shares of Class B common 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 common stock cash dividends.

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 (loss) 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. 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 common stock cash dividends.

The allocation of undistributed (loss) earnings between common stock and Class B common stock is based on the relationship of the weighted shares outstanding for the respective stock class (common or Class B) to the total of the weighted shares outstanding for common stock and 90% of the weighted shares outstanding for Class B common stock. The adjustment to the number of outstanding Class B common stock shares reflects the limitation of Class B common stock dividends to 90% of common stock dividends.

The earnings per share (“EPS”) presented in our unaudited consolidated statements of comprehensive (loss) income was based on the following amounts (in thousands, except per share amounts):


	Three Months Ended
	November 30, 2024						December 2, 2023
	Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted EPS:
Net loss	$	(751	)	$	(751	)	$	(1,797	)	$	(1,797	)
Less dividends:
Common stock		742			742			734			734
Class B common stock		111			111			111			111
Undistributed loss	$	(1,604	)	$	(1,604	)	$	(2,642	)	$	(2,642	)

Common stock undistributed loss	$	(1,395	)	$	(1,395	)	$	(2,295	)	$	(2,295	)
Class B common stock undistributed loss		(209	)		(209	)		(347	)		(347	)
Total undistributed loss	$	(1,604	)	$	(1,604	)	$	(2,642	)	$	(2,642	)

Denominator for Basic and Diluted EPS:
Common stock weighted average shares		12,315			12,315			12,226			12,226
Effect of dilutive securities
Dilutive stock options					—						—
Denominator for diluted EPS adjusted for weighted average shares and assumed conversion					12,315						12,226
Class B common stock weighted average shares and shares under if-converted method for diluted EPS		2,049			2,049			2,052			2,052

Net loss per share:
Common stock	$	(0.05	)	$	(0.05	)	$	(0.13	)	$	(0.13	)

Class B common stock	$	(0.05	)	$	(0.05	)	$	(0.12	)	$	(0.12	)

Note: There were 249 common stock options that were antidilutive and not included in the diluted earnings per share in the second quarter of fiscal 2025. There were 221 common stock options that were antidilutive and not included in the diluted earnings per share for the second quarter of fiscal 2024.


	Six Months Ended
	November 30, 2024						December 2, 2023
	Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted EPS:
Net loss	$	(161	)	$	(161	)	$	(570	)	$	(570	)
Less dividends:
Common stock		1,481			1,481			1,466			1,466
Class B common stock		222			222			222			222
Undistributed loss	$	(1,864	)	$	(1,864	)	$	(2,258	)	$	(2,258	)

Common stock undistributed loss	$	(1,620	)	$	(1,620	)	$	(1,961	)	$	(1,961	)
Class B common stock undistributed loss		(244	)		(244	)		(297	)		(297	)
Total undistributed loss	$	(1,864	)	$	(1,864	)	$	(2,258	)	$	(2,258	)

Denominator for Basic and Diluted EPS:
Common stock weighted average shares		12,258			12,258			12,198			12,198
Effect of dilutive securities
Dilutive stock options					—						—
Denominator for diluted EPS adjusted for weighted average shares and assumed conversion					12,258						12,198
Class B common stock weighted average shares and shares under if-converted method for diluted EPS		2,049			2,049			2,052			2,052

Net loss per share:
Common stock	$	(0.01	)	$	(0.01	)	$	(0.04	)	$	(0.04	)

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

Note: There were 241 common stock options that were antidilutive and not included in the diluted earnings per share for the first six months of fiscal 2025. There were 297 common stock options that were antidilutive and not included in the diluted earnings per share for first six months of fiscal 2024.