Annual report pursuant to Section 13 and 15(d)

Note 11 - Stockholders' Equity

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Note 11 - Stockholders' Equity
 12 Months Ended
Apr. 01, 2012
Stockholders' Equity Note Disclosure [Text Block]
Note 11 – Stockholders’ Equity

On August 9, 2011, at the Company’s 2011 annual meeting of stockholders, a proposal was approved to amend the Company’s amended and restated certificate of incorporation to reduce the Company’s authorized capital stock to 40,000,000 shares, all of which are Series A common stock with a par value of $0.01 per share.  Prior to the approval of this proposal, the Company’s amended and restated certificate of incorporation authorized the issuance of up to 75,000,000 shares of capital stock, subdivided as follows:

   
Authorized
Shares
 
Common stock, $0.01 par value per share:
     
Series A
    73,500,000  
Series B
    327,940  
Series C
    172,060  
         
Total common stock
    74,000,000  
Preferred stock, $0.01 par value per share
    1,000,000  
         
Total authorized capital stock
    75,000,000  

Dividends:  The holders of the Company’s common stock are entitled to receive dividends when and as declared by the Board.  In February 2010, the Board recommenced the regular quarterly declaration of cash dividends, with no cash dividends having previously been declared since 1999.  Aggregate cash dividends of $0.22 and $0.09 per share, amounting to $2.1 million and $855,000, were declared during fiscal years 2012 and 2011, respectively.  As of April 1, 2012, the Company’s financing agreement with CIT permitted the payment of cash dividends on the Company’s common stock of up to $500,000 per calendar quarter.

The financing agreement was amended effective as of April 2, 2012 to permit the payment by the Company of cash dividends on its common stock without limitation, provided there is no default before or as a result of the payment of such dividends.

Stock Repurchases:  In June 2007, the Board created a capital committee which has, from time to time, adopted a program that would allow the Company to repurchase shares of the Company’s common stock.  The Company did not repurchase any shares under this program during fiscal years ended April 1, 2012 and April 3, 2011, and there was no share repurchase program in effect as of April 1, 2012.

The Company acquired treasury shares by way of the surrender to the Company from a non-employee director and several employees shares of common stock to satisfy the exercise price and income tax withholding obligations relating to the exercise of stock options and the vesting of shares of restricted stock.  In this manner, the Company acquired 218,000 treasury shares during fiscal year 2012 at a weighted-average market value of $4.75 per share and acquired 174,000 treasury shares during fiscal year 2011 at a weighted-average market value of $4.47 per share.