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EARNINGS PER COMMON SHARE
 9 Months Ended
Apr. 30, 2014
EARNINGS PER COMMON SHARE  
EARNINGS PER COMMON SHARE

6. EARNINGS PER COMMON SHARE

        Basic earnings per common share is computed by dividing net earnings 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 determined using the Treasury Stock method. On March 18, 2014, Z Investment exercised all of its Warrants to purchase shares of our common stock (see Note 4). As a result of the exercise, 4.8 million and 5.1 million shares were included in the basic and diluted weighted average share count, respectively, for the three months ended April 30, 2014. For the nine months ended April 30, 2014, 1.5 million and 8.1 million shares were included in the basic and diluted weighted average share count, respectively, as a result of the Warrant exercise.

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

 
   Three Months Ended
April 30,		   Nine Months Ended
April 30,		  
 
   2014   2013   2014   2013  

Basic weighted average shares

     38,017     32,480     34,519     32,401  

Effect of dilutive securities:

                          

Warrants

     5,120     5,894     8,086     6,639  

Stock options and restricted share awards

     2,738     903     2,604     1,099  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Diluted weighted average shares

     45,875     39,277     45,209     40,139  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

        The calculation of diluted weighted average shares excludes the impact of 0.8 million and 1.9 million antidilutive stock options for the three months ended April 30, 2014 and 2013, respectively, and 0.8 million and 1.8 million antidilutive stock options for the nine months ended April 30, 2014 and 2013, respectively.