Earnings Per Common Share

9 Months Ended

Apr. 30, 2017

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,
	2017		2016		2017		2016
Numerator for basic and diluted earnings per share:
Net income	$	17,511,000	$	14,019,000	$	54,381,000	$	43,662,000
Less income allocated to participating securities		(98,000)		(115,000)		(335,000)		(359,000)
Net income available to common shareholders	$	17,413,000	$	13,904,000	$	54,046,000	$	43,303,000
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		41,489,587		41,363,548		41,459,067		41,335,488
Dilutive effect of stock options using the treasury stock method and the average market price for the year		75,431		47,164		74,420		44,817
Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock		41,565,018		41,410,712		41,533,487		41,380,305
Earnings per share attributable to common stock:
Basic earnings per share	$	0.42	$	0.34	$	1.30	$	1.05
Diluted earnings per share	$	0.42	$	0.34	$	1.30	$	1.05
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,
	2017	2016	2017	2016
Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock	41,565,018	41,410,712	41,533,487	41,380,305
Participating securities	233,501	340,708	259,050	342,746
Total weighted average number of shares and common stock equivalents attributable to both common stock and participating securities	41,798,519	41,751,420	41,792,537	41,723,051