Earnings Per Share

3 Months Ended

Jan. 31, 2020

We compute basic earnings (loss) per share by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per common and potential common shares include the weighted average of additional shares associated with the incremental effect of dilutive employee stock options, non-vested restricted stock as determined using the treasury stock method prescribed by U.S. GAAP and contingent shares associated with performance share awards, if dilutive.

Basic and diluted earnings (loss) per share for the three months ended January 31, 2020 and 2019 were calculated as follows (in thousands, except per share data):



	Net Income (Loss)			Weighted Average Shares	Per Share

Three Months Ended January 31, 2020
Basic earnings per common share	$	10		32,861	$	—
Effect of dilutive securities:
Stock options				77
Restricted stock awards				93
Performance shares				28
Performance restricted stock units				19
Diluted earnings per common share	$	10		33,078	$	—

Three Months Ended January 31, 2019
Basic loss per common share	$	(3,649	)	33,098	$	(0.11	)
Diluted loss per common share⁽¹⁾	$	(3,649	)	33,098	$	(0.11	)

⁽¹⁾ The computation of diluted earnings per share excludes outstanding stock options and other common stock equivalents when their inclusion would be anti-dilutive. This is always the case when an entity incurs a net loss. During the three months ended January 31, 2019, 6,775 shares of common stock equivalent and 96,507 shares of restricted stock were excluded from the

computation of diluted earnings per share. In addition 15,735 potentially dilutive contingent shares related to performance share awards for the three months ended 2019 were excluded.

We had common stock equivalents that were potentially dilutive in future earnings per share calculations of 772,756 for the three months ended January 31, 2020 and 1,694,464 for the comparable prior year period. We also had 56,000 restricted stock award equivalents that were potentially dilutive in future earnings per calculations for the three months ended January 31, 2020 and no corresponding equivalents for the corresponding prior year. Such dilution will be dependent on the excess of the market price of our stock over the exercise price and other components of the treasury stock method.