Earnings Per Common Share

9 Months Ended

Apr. 30, 2016

Earnings Per Common Share

Earnings Per Common Share

Note 11.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):

	Three Months Ended				Nine Months Ended
	April 30,				April 30,
	2016		2015		2016		2015
Numerator for basic and diluted earnings per share:
Net income	$	14,019,000	$	12,356,000	$	43,662,000	$	34,680,000
Less income allocated to participating securities		(115,000)		(105,000)		(359,000)		(323,000)
Net income available to common shareholders	$	13,904,000	$	12,251,000	$	43,303,000	$	34,357,000
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		41,363,548		41,187,720		41,335,488		41,114,830
Dilutive effect of stock options using the treasury stock method and the average market price for the year		47,164		60,837		44,817		68,479
Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock		41,410,712		41,248,557		41,380,305		41,183,309
Earnings per share attributable to common stock:
Basic earnings per share	$	0.34	$	0.30	$	1.05	$	0.84
Diluted earnings per share	$	0.34	$	0.30	$	1.05	$	0.83
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, is set forth in the following table:

	Three Months Ended		Nine Months Ended
	April 30,		April 30,
	2016	2015	2016	2015
Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock	41,410,712	41,248,557	41,380,305	41,183,309
Participating securities	340,708	342,850	342,746	390,449
Total weighted average number of shares and common stock equivalents attributable to both common stock and participating securities	41,751,420	41,591,407	41,723,051	41,573,758