(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 January 25, 2014 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 39 weeks ended January 26, 2013 and the 39 weeks ended January 25, 2014, participating securities in the amount of 2,750,951, 2,841,629 and 2,748,293, 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 income (loss) per share calculation:


	13 weeks ended						39 weeks ended
	January 25, 2014			January 26, 2013			January 25, 2014			January 26, 2013
Numerator for basic income (loss) per share:
Net income (loss)	$	63,230			(3,683	)	$	(10,564	)		(43,010	)
Preferred stock dividends		(3,942	)		(3,942	)		(11,825	)		(11,825	)
Accretion of dividends on preferred stock		(316	)		(739	)		(947	)		(1,508	)
Less allocation of earnings and dividends to participating securities		(2,604	)		—			—			—

Net income (loss) available to common shareholders	$	56,368			(8,364	)	$	(23,336	)		(56,343	)

Numerator for diluted income (loss) per share:
Net income (loss) available to common shareholders	$	56,368			(8,364	)	$	(23,336	)		(56,343	)
Preferred stock dividends		3,942			—			—			—
Accretion of dividends on preferred stock		316			—			—			—
Allocation of earnings and dividends to participating securities		2,604			—			—			—
Less diluted allocation of earnings and dividends to participating securities		(2,338	)		—			—			—
Effect of dilutive options		—			—			—			—

Net income (loss) available to common shareholders	$	60,892			(8,364	)	$	(23,336	)		(56,343	)

Denominator for basic income (loss) per share:
Basic weighted average common shares		59,033			58,316			58,919			58,168

Denominator for diluted income (loss) per share:
Basic weighted average common shares		59,033			58,316			58,919			58,168
Preferred shares		12,000			—			—			—

Diluted weighted average common shares		71,033			58,316			58,919			58,168

Income (loss) per common share
Basic	$	0.95			(0.14	)	$	(0.40	)		(0.97	)
Diluted	$	0.86			(0.14	)	$	(0.40	)		(0.97	)