Quarterly report pursuant to Section 13 or 15(d)

EARNINGS PER SHARE

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EARNINGS PER SHARE
 6 Months Ended
Jun. 24, 2012
EARNINGS PER SHARE
  3. EARNINGS PER SHARE

The number of shares and earnings per share data (“EPS”) for all periods presented are based on the historical weighted-average shares of common stock outstanding. EPS is computed using the two-class method. The two-class method determines EPS for common stock and participating securities according to dividends and dividend equivalents and their respective participation rights in undistributed earnings. The Company’s convertible preferred stockholders are entitled to receive dividends in the event dividends on the Company’s common stock are declared. As a result, the shares of the Company’s convertible preferred stock are deemed to be participating securities.

 

Basic EPS of common stock is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period.

Diluted EPS of common stock is computed on the basis of the weighted-average number of shares of common stock plus the effect of dilutive potential shares of common stock equivalents outstanding during the period using the treasury stock method for dilutive options and the if converted method for convertible preferred stock. For the thirteen weeks ended June 26, 2011, options to purchase 63,797 shares of common stock were outstanding but not included in the computation of diluted net EPS because their inclusion would be anti-dilutive.

The computation of basic and diluted earnings per share is as follows:

 

    Thirteen Weeks Ended         Twenty-Six Weeks Ended  
 

 

 

      

 

 

  
    June 24, 2012     June 26, 2011         June 24, 2012     June 26, 2011  
 

 

 

      

 

 

  

BASIC

          

Numerator:

          

Net income

     $ 1,731          $ 674            $ 2,111          $ 1,938     

Less liquidation preference and preferred return on series X preferred stock

     234          256            491          518     

Less undistributed earnings allocated to participating interest

     1,466          410            1,588          1,397     
 

 

 

    

 

 

      

 

 

    

 

 

  

Net income available to common stockholders

     $ 31          $ 8            $ 32          $ 23     
 

 

 

    

 

 

      

 

 

    

 

 

  

Denominator:

          

Weighted-average common shares outstanding

     194,766          173,456            201,634          176,111     
 

 

 

    

 

 

      

 

 

    

 

 

  

Basic earnings per common share

     $ 0.16          $ 0.05            $ 0.16          $ 0.13     
 

 

 

    

 

 

      

 

 

    

 

 

  

DILUTED

          

Numerator:

          

Net income

     $ 1,731          $ 674            $ 2,111          $ 1,938     

Less liquidation preference and preferred return on series X preferred stock

     234          256            491          518     

Less undistributed earnings allocated to participating interest

     84          22            91          80     
 

 

 

    

 

 

      

 

 

    

 

 

  

Net income available to common and participating stockholders

     $ 1,413          $ 396            $ 1,529          $ 1,340     
 

 

 

    

 

 

      

 

 

    

 

 

  

Denominator:

          

Weighted-average common shares outstanding

     194,766          173,456            201,634          176,111     

Dilutive effect of preferred stock conversion

     8,689,686          10,049,572            9,369,629          10,049,572     

Dilutive effect of stock options

     653,641          617,273            648,515          596,177     
 

 

 

    

 

 

      

 

 

    

 

 

  

Weighted-average of diluted shares

     9,538,093          10,840,301            10,219,778          10,821,860     
 

 

 

    

 

 

      

 

 

    

 

 

  

Diluted earnings per common share

     $ 0.15          $ 0.04            $ 0.15          $ 0.12