EARNINGS (LOSS) PER COMMON SHARE

12 Months Ended

Jul. 31, 2013

EARNINGS (LOSS) PER COMMON SHARE

EARNINGS (LOSS) PER COMMON SHARE

15. EARNINGS (LOSS) PER COMMON SHARE

        Basic earnings (loss) per common share is computed by dividing net earnings (loss) by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of stock options, restricted share awards and warrants issued in connection with the senior secured term loan using the treasury stock method.

        The following table presents a reconciliation of the diluted weighted average shares (in thousands):

	Year Ended July 31,
	2013		2012		2011
Basic weighted average shares		32,429		32,196		32,129
Effect of potential dilutive securities:
Warrants		7,189		—		—
Stock options and restricted share awards		1,340		—		—
Diluted weighted average shares		40,958		32,196		32,129

        The calculation of diluted weighted average shares excludes the impact of 1.2 million, 5.1 million and 3.0 million antidilutive stock options and restricted share awards for the years ended July 31, 2013, 2012 and 2011, respectively. The calculation of diluted weighted average shares also excludes the impact of 11.1 million antidilutive warrants for both the years ended July 31, 2012 and 2011.

        We incurred a net loss of $27.3 million and $112.3 million for the years ended July 31, 2012 and 2011, respectively. A net loss causes all outstanding stock options, restricted share awards and warrants to be antidilutive. As a result, the basic and dilutive losses per common share are the same for those fiscal years.