12. Earnings (loss) per Share

Basic earnings (loss) per share have been computed by dividing net earnings by the weighted average number of common shares outstanding during the applicable period. Diluted earnings (loss) per share reflect the potential dilution that could occur if stock options or other contracts to issue common shares were exercised or converted into common stock.

For the three and six months ended August 31, 2017, 42,500 and 95,692 shares, respectively, related to stock options were not included in the diluted earnings per share computation because the exercise price exceeded the average fair market value of the Company’s stock. For the three months ended August 31, 2016, 42,500 shares related to stock options were not included in the diluted earnings per share computation because the exercise price exceeded the average fair market value of the Company’s stock. For the six months ended August 31, 2016, all options were included in the diluted earnings (loss) per share computation because their average fair market value exceeded the exercise price of the Company’s stock. The following table sets forth the computation for basic and diluted earnings (loss) per share for the periods indicated:

	Three months ended				Six months ended
	August 31,				August 31,
	2017		2016		2017		2016
Basic weighted average common shares outstanding		25,342,747		25,893,218		25,388,292		25,847,051
Effect of dilutive options		23,254		17,157		17,571		21,748
Diluted weighted average common shares outstanding		25,366,001		25,910,375		25,405,863		25,868,799
Earnings (loss) per share - basic and diluted
Earnings per share on continuing operations	$	0.34	$	0.26	$	0.64	$	0.52
Earnings per share on discontinued operations		—		—		—		0.10
Loss per share on sale of discontinued operations		—		—		—		(1.01	)
Loss on discontinued operations		—		—		—		(0.91	)
Net earnings (loss)	$	0.34	$	0.26	$	0.64	$	(0.39	)
Cash dividends	$	0.20	$	1.675	$	0.375	$	1.85