Earnings Per Share

3 Months Ended

Nov. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 4– EARNINGS PER SHARE

The following is a reconciliation from basic earnings per share (EPS) to diluted EPS.  Prior to the collection of the management stock loans in the second quarter of fiscal 2013, the 3.3million management stock loan common shares held in escrow were included in our basic EPS calculation during periods of net income and excluded in periods of net loss because they were determined to be participating securities and continued to have equivalent common stock dividend rights (in thousands, except per-share amounts).

	Quarter Ended
		November 30,		December 1,
		2013		2012
Numerator for basic and
diluted earnings per share:
Net income	$	1,719	$	2,897
Denominator for basic and
diluted earnings per share:
Basic weighted average shares
outstanding		16,564		18,161
Effect of dilutive securities:
Stock options and other
share-based awards		295		30
Common stock warrants		-		1,084
Diluted weighted average
shares outstanding		16,859		19,275
EPS Calculations:
Net income per share:
Basic	$	0.10	$	0.16
Diluted		0.10		0.15

At December 1, 2012, we had approximately 0.7 million stock options outstanding that were not included in the computation of diluted EPS because the options’ exercise prices were greater than the average market price of our common shares for the respective periods.  Although these shares were not included in our calculation of diluted EPS, these stock options, and other dilutive securities, including performance share-based compensation instruments, may have a dilutive effect on our EPS calculation in future periods if the price of our common stock increases.