Note 9 – Earnings per Share

The computation of basic earnings per share is based on the weighted average number of common shares outstanding during each period. The computation of diluted earnings per share is based on the weighted average number of common shares outstanding during the period plus, when their effect is dilutive, incremental shares consisting of shares subject to stock options and shares issuable upon vesting of restricted stock awards.

In accordance with ASC 260-10-45, Share-Based Payment Arrangements and Participating Securities and the Two-Class Method, our unvested restricted stock awards are deemed participating securities since these shares are entitled to participate in dividends declared on common shares. During periods of net income, the calculation of earnings per share for common stock excludes income attributable to unvested restricted stock awards from the numerator and excludes the dilutive impact of those shares from the denominator. During periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company.

A reconciliation of the computations of basic and diluted earnings per share information for the three- and six-month periods ended November 30, 2018 and 2017 is as follows:


	Three Months Ended				Six Months Ended
	November 30,				November 30,
	2018		2017		2018		2017
Basic and Diluted EPS:
Income from continuing operations	$	11.2	$	13.2	$	30.1	$	24.2
Less income attributable to participating shares		(0.1)		(0.1)		(0.1)		(0.1)
Income from continuing operations attributable to common shareholders		11.1		13.1		30.0		24.1
Loss from discontinued operations attributable to common shareholders		(4.2)		(35.8)		(8.0)		(36.2)
Net income (loss) attributable to common shareholders for earnings per share	$	6.9	$	(22.7)	$	22.0	$	(12.1)

Weighted Average Shares:
Weighted average common shares outstanding – basic		34.6		34.0		34.6		34.1
Additional shares from the assumed exercise of stock options		0.4		0.5		0.5		0.4
Weighted average common shares outstanding – diluted		35.0		34.5		35.1		34.5

Earnings (Loss) per share – basic:
Earnings from continuing operations	$	0.32	$	0.39	$	0.87	$	0.71
Loss from discontinued operations		(0.12)		(1.05)		(0.23)		(1.06)
Earnings (Loss) per share – basic and diluted	$	0.20	$	(0.66)	$	0.64	$	(0.35)

Earnings (Loss) per share – diluted:
Earnings from continuing operations	$	0.32	$	0.38	$	0.85	$	0.70
Loss from discontinued operations		(0.12)		(1.04)		(0.23)		(1.05)
Earnings (Loss) per share – basic and diluted	$	0.20	$	(0.66)	$	0.62	$	(0.35)

The potential dilutive effect of 290,000 shares relating to stock options was excluded from the computation of weighted average common shares outstanding -- diluted for both the three- and six-month periods ended November 30, 2018 as the shares would have been anti-dilutive. At November 30, 2017, the average market price of our common shares was in excess of the exercise prices of all of our outstanding options.