Earnings Per Common Share

3 Months Ended

Oct. 31, 2019

Basic EPS is computed based upon the weighted average number of common shares outstanding for the year. Diluted EPS is computed based upon the weighted average number of common shares outstanding for the year plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of our common stock for the year. We include participating securities (nonvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents) in the computation of EPS pursuant to the two-class method. Our participating securities consist solely of nonvested restricted stock awards, which have contractual participation rights equivalent to those of stockholders of unrestricted common stock. The two-class method of computing earnings per share is an allocation method that calculates earnings per share for common stock and participating securities.

The following table sets forth the computation of basic and diluted EPS available to stockholders of common stock (excluding participating securities):



	Three Months Ended October 31,
	2019			2018
Numerator for basic and diluted earnings per share:
Net income	$	5,767		$	19,242
Less income allocated to participating securities	(2		)	(33		)
Net income available to common shareholders	$	5,765		$	19,209
Denominator for basic and diluted earnings per share, adjusted for participating securities:
Denominator for basic earnings per share - weighted average number of shares outstanding attributable to common stock	42,022,383			41,640,745
Dilutive effect of stock awards using the treasury stock method and the average market price for the year	146,422			65,028
Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock	42,168,805			41,705,773
Earnings per share attributable to common stock:
Basic earnings per share	$	0.14		$	0.46
Diluted earnings per share	$	0.14		$	0.46
Stock options excluded because their inclusion would have been anti-dilutive	—			—

A reconciliation of weighted average number of shares and common stock equivalents attributable to common stock, as determined above, to our total weighted average number of shares and common stock equivalents, including participating securities, is set forth in the following table:



	Three Months Ended October 31,
	2019	2018
Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock	42,168,805	41,705,773
Participating securities	16,857	69,452
Total weighted average number of shares and common stock equivalents attributable to both common stock and participating securities	42,185,662	41,775,225