(5) Earnings (Loss) per Share

In accordance with ASC 260-10-45, Share-Based Payment Arrangements and Participating Securities and the Two-Class Method, the Company’s unvested restricted shares, unvested restricted stock units and shares issuable under the Company’s deferred compensation plan are considered participating securities. During periods of net income, the calculation of earnings per share for common stock are reclassified to exclude the income attributable to unvested restricted shares, unvested restricted stock units and shares issuable under the Company’s deferred compensation plan from the numerator and exclude the dilutive impact of those shares from the denominator. Diluted earnings per share for the 13 weeks ended October 26, 2013 was calculated using the two-class method for stock options, restricted stock and restricted stock units, and the if-converted method for the preferred stock.

During periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company. Due to the net loss during the 13 and 26 weeks ended October 27, 2012 and the 26 weeks ended October 26, 2013, participating securities in the amount of 2,846,643, 2,886,968 and 2,758,721, respectively, were excluded from the calculation of loss per share using the two-class method because the effect would be antidilutive. The Company’s outstanding stock options were also excluded from the calculation of loss per share using the two-class method because the effect would be antidilutive.

The following is a reconciliation of the Company’s basic and diluted loss per share calculation:


	13 weeks ended						26 weeks ended
	October 26, 2013			October 27, 2012			October 26, 2013			October 27, 2012
Numerator for basic income (loss) per share:
Net income (loss)	$	13,229			501		$	(73,793	)		(39,327	)
Preferred stock dividends		(3,942	)		(3,942	)		(7,884	)		(7,884	)
Accretion of dividends on preferred stock		(316	)		(453	)		(631	)		(769	)
Less allocation of earnings and dividends to participating securities		(363	)		—			—			—

Net income (loss) available to common shareholders	$	8,608			(3,894	)	$	(82,308	)		(47,980	)

Numerator for diluted income (loss) per share:
Net income (loss) available to common shareholders	$	8,608			(3,894	)	$	(82,308	)		(47,980	)
Preferred stock dividends ^(a)		—			—			—			—
Accretion of dividends on preferred stock ^(a)		—			—			—			—
Effect of dilutive options		—			—			—			—

Net income (loss) available to common shareholders	$	8,608			(3,894	)	$	(82,308	)		(47,980	)

Denominator for basic income (loss) per share:
Basic weighted average common shares		58,956			58,168			58,862			58,094

Denominator for diluted income (loss) per share:
Basic weighted average common shares		58,956			58,168			58,862			58,094
Preferred shares ^(a)		—			—			—			—

Diluted weighted average common shares		58,956			58,168			58,862			58,094

Income (loss) per common share
Basic	$	0.15			(0.07	)	$	(1.40	)		(0.83	)
Diluted	$	0.15			(0.07	)	$	(1.40	)		(0.83	)

^(a)	Although the Company was in a net income position during the 13 weeks ended October 26, 2013, the dilutive effect of the Company’s convertible preferred shares were excluded from the calculation of income per share using the two-class method because the effect would be antidilutive.