Earnings Per Share

9 Months Ended

Aug. 31, 2020

As of August 31, 2020 and 2019, there were 159,263,140 and 158,659,803 shares of common stock issued, respectively, and 158,655,140 and 158,051,803 shares of common stock outstanding, respectively. Outstanding shares as of August 31, 2020 and 2019 have been adjusted to reflect 608,000 treasury shares.

Basic net income per share is computed by dividing the net earnings attributable to common shareholders by the weighted average number of common shares outstanding during the period.

Diluted earnings per share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding, increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. Conversion or exercise of the potential common shares is not reflected in diluted earnings per share unless the effect is dilutive. The dilutive effect, if any, of outstanding common share equivalents is reflected in diluted earnings per share by application of the treasury stock method, and if-converted method as applicable.

The following table reconciles actual basic and diluted earnings per share for the three months and nine months ended August 31, 2020 and 2019 (in thousands except per share data).


	Three Months Ended August 31,						Nine Months Ended August 31,
	2020(1)		2019(2)		2020(3)		2019(4)
Income (loss) per share:
Numerator:
Net income (loss) from continuing operations	$	(1,028)	$	80,201	$	16,127	$	16,875
Net income (loss) from discontinued operations	—		70		(53)		36
Numerator for basic EPS - net income (loss) attributable to common stockholders	$	(1,028)	$	80,271	$	16,074	$	16,911
Add back convertible notes interest	—		1,095		2,996		3,270
Numerator for diluted earnings per share - net income (loss) attributable to common stockholders	$	(1,028)	$	81,296	$	19,123	$	20,145

Basic income (loss) per common share:
Basic income (loss) from continuing operations	$	(0.01)	$	0.51	$	0.10	$	0.11
Basic income (loss) from discontinued operations	—		—		—		—
Basic income (loss) per share available to common shareholders	$	(0.01)	$	0.51	$	0.10	$	0.11
Diluted income (loss) per common share:
Diluted income (loss) from continuing operations	$	(0.01)	$	0.41	$	0.09	$	0.10
Diluted income (loss) from discontinued operations	—		—		—		—
Diluted income (loss) per share available to common shareholders	$	(0.01)	$	0.41	$	0.09	$	0.10
Denominator:
Basic	157,655,140		156,968,470		157,624,241		156,949,425
Diluted	157,655,140		195,979,957		206,696,703		194,867,908

(1)The computation of diluted EPS does not include 100,000 shares underlying stock appreciation rights, 1,000,000 shares of restricted stock, 42,500,000 shares of common stock underlying warrants and 33,918,483 shares of common stock issuable upon conversion of the 5% Convertible Notes as the effect of their inclusion would have been anti-dilutive.

(2)The computation of diluted EPS does not include 85,000 shares of common stock underlying options, 100,000 shares of stock appreciation rights and 2,000,000 shares of common stock underlying warrants, as the effect of their inclusion would have been anti-dilutive.

(3)The computation of diluted EPS does not include 100,000 shares underlying stock appreciation rights as the effect of their inclusion would have been anti-dilutive.

(4)The computation of diluted EPS does not include 85,000 shares of common stock underlying options, 100,000 shares of stock appreciation rights, 1,083,333 shares of restricted stock and 44,500,000 shares of common stock underlying warrants, as the effect of their inclusion would have been anti-dilutive.