Earnings Per Common Share

12 Months Ended

Jul. 31, 2013

Earnings Per Common Share

Earnings Per Common Share

13.          Earnings Per Common Share

Basic EPS is computed based upon the weighted average number of common shares outstanding during the year. Diluted EPS is computed based upon the weighted average number of common shares outstanding during 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 (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 shareholders of common stock (excluding participating securities):

	Year Ended July 31,
	2013			2012			2011
Numerator for basic and diluted earnings per share:
Net income	$	39,239,000		$	31,337,000		$	20,425,000
Less income allocated to participating securities	(608,000		)	(580,000		)	(290,000		)
Net income available to common shareholders	$	38,631,000		$	30,757,000		$	20,135,000
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	40,267,885			39,586,170			37,924,794
Dilutive effect of stock options using the treasury stock method and the average market price for the year	289,007			438,753			504,747
Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock	40,556,892			40,024,923			38,429,541
Earnings per share attributable to common stock:
Basic earnings per share	$	0.96		$	0.78		$	0.53
Diluted earnings per share	$	0.95		$	0.77		$	0.52
Stock options excluded from weighted average dilutive common shares outstanding because their inclusion would have been antidilutive	—			—			76,499

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, is set forth in the following table:

	Year Ended July 31,
	2013	2012	2011
Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock	40,556,892	40,024,923	38,429,541
Participating securities	639,827	751,896	549,579
Total weighted average number of shares and common stock equivalents attributable to both common stock and participating securities	41,196,719	40,776,819	38,979,120