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Earnings per Share
9 Months Ended
Feb. 28, 2019
Earnings per Share  
Earnings per Share

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 nine-month periods ended February 28, 2019 and 2018 is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

February 28, 

 

February 28, 

 

    

2019

    

2018

    

2019

    

2018

Basic and Diluted EPS:

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

27.4

 

$

31.3

 

$

57.5

 

$

55.6

Less income attributable to participating shares

 

 

(0.1)

 

 

(0.2)

 

 

(0.2)

 

 

(0.5)

Income from continuing operations attributable to common shareholders

 

 

27.3

 

 

31.1

 

 

57.3

 

 

55.1

Loss from discontinued operations attributable to common shareholders

 

 

(64.8)

 

 

(15.8)

 

 

(72.8)

 

 

(52.0)

Net income (loss) attributable to common shareholders for earnings per share

 

$

(37.5)

 

$

15.3

 

$

(15.5)

 

$

3.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding – basic

 

 

34.5

 

 

34.0

 

 

34.6

 

 

34.1

Additional shares from the assumed exercise of stock options

 

 

0.4

 

 

0.5

 

 

0.4

 

 

0.4

Weighted average common shares outstanding – diluted

 

 

34.9

 

 

34.5

 

 

35.0

 

 

34.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) per share – basic:

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from continuing operations

 

$

0.79

 

$

0.91

 

$

1.66

 

$

1.62

Loss from discontinued operations

 

 

(1.87)

 

 

(0.46)

 

 

(2.11)

 

 

(1.52)

Earnings (Loss) per share – basic and diluted

 

$

(1.08)

 

$

0.45

 

$

(0.45)

 

$

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) per share – diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from continuing operations

 

$

0.78

 

$

0.90

 

$

1.63

 

$

1.60

Loss from discontinued operations

 

 

(1.86)

 

 

(0.46)

 

 

(2.08)

 

 

(1.52)

Earnings (Loss) per share – basic and diluted

 

$

(1.08)

 

$

0.44

 

$

(0.45)

 

$

0.08

 

The potential dilutive effect of 277,000 shares and 273,000 shares relating to stock options was excluded from the computation of weighted average common shares outstanding – diluted for both the three- and nine-month periods ended February 28, 2019, respectively, as the shares would have been anti-dilutive.  At February 28, 2018, the average market price of our common shares was in excess of the exercise price of all of our outstanding options.