Earnings Per Common Share

9 Months Ended

Apr. 30, 2013

Earnings Per Common Share

Earnings Per Common Share

Note 10. Earnings Per Common Share

Basic EPS is computed based upon the weighted average number of common shares outstanding during the period. Diluted EPS is computed based upon the weighted average number of common shares outstanding during the period plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of our common stock for the period.

We include participating securities (unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents) in the computation of EPS pursuant to the two-class method. Our participating securities consist solely of unvested 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						Nine Months Ended
	April 30,						April 30,
	2013			2012			2013			2012
Numerator for basic and diluted earnings per share:
Net income	$	8,998,000		$	8,174,000		$	29,026,000		$	21,688,000
Less income allocated to participating securities	(137,000		)	(145,000		)	(454,000		)	(415,000		)
Net income available to common stockholders	$	8,861,000		$	8,029,000		$	28,572,000		$	21,273,000
Denominator for basic and diluted earnings per share, as adjusted for participating securities:
Denominator for basic earnings per share - weighted average number of shares outstanding attributable to common stock	26,910,626			26,510,240			26,801,127			26,332,676
Dilutive effect of stock options using the treasury stock method and the average market price for the period	172,479			289,943			210,461			302,994
Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock	27,083,105			26,800,183			27,011,588			26,635,670
Earnings per share attributable to common stock:
Basic earnings per share	$	0.33		$	0.30		$	1.07		$	0.81
Diluted earnings per share	$	0.33		$	0.30		$	1.06		$	0.80
Stock options excluded from weighted average dilutive common shares outstanding because their inclusion would have been antidilutive	—			—			—			—

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

	Three Months Ended		Nine Months Ended
	April 30,		April 30,
	2013	2012	2013	2012
Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock	27,083,105	26,800,183	27,011,588	26,635,670
Participating securities	417,610	482,218	430,736	512,599
Total weighted average number of shares and common stock equivalents attributable to both common stock and participating securities	27,500,715	27,282,401	27,442,324	27,148,269