Earnings per Share

3 Months Ended

Aug. 31, 2021

Earnings per Share

Earnings per Share

Note 14 – 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-month periods ended August 31, 2021 and 2020 is as follows:

	Three Months Ended
	August 31,
	2021		2020
Basic and Diluted EPS:
Income (Loss) from continuing operations	$	11.2	$	(13.9)
Less income attributable to participating shares		(0.1)		—
Income (Loss) from continuing operations attributable to common shareholders		11.1		(13.9)
Income (Loss) from discontinued operations attributable to common shareholders		0.3		(0.6)
Net income (loss) attributable to common shareholders for earnings per share		11.4	$	(14.5)
Weighted Average Shares:
Weighted average common shares outstanding–basic		35.1		34.9
Additional shares from assumed exercise of stock options		0.6		0.1
Weighted average common shares outstanding–diluted		35.7		35.0
Earnings (Loss) per share – basic:
Earnings (Loss) from continuing operations	$	0.32	$	(0.40)
Loss from discontinued operations		0.01		(0.02)
Earnings (Loss) per share - basic	$	0.33	$	(0.42)
Earnings (Loss) per share – diluted:
Earnings (Loss) from continuing operations	$	0.31	$	(0.40)
Loss from discontinued operations		0.01		(0.02)
Earnings (Loss) per share - diluted	$	0.32	$	(0.42)

The potential dilutive effect of 793,000 and 1,750,000 shares relating to stock options was excluded from the computation of weighted average common shares outstanding – diluted for the three-month periods ended August 31, 2021 and 2020, respectively, as the shares would have been anti-dilutive.