Basic earnings per share have been computed by dividing net earnings by the weighted average number of common shares outstanding during the applicable period. Diluted earnings 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 nine months ended November 30, 2018, all options were included in the diluted earnings per share computation because the average fair market value of the Company’s stock exceeded the exercise price of the options. For the three months ended November 30, 2017, all options were included in the earnings per share computation because the average fair market value of the Company’s stock exceeded the exercise price of the options. For the nine months ended November 30, 2017, 42,500 shares related to stock options were not included in the diluted earnings per share computation because the exercise price of the options exceeded the average fair market value 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				Nine months ended
	November 30,				November 30,
	2018		2017		2018		2017
Basic weighted average common shares outstanding		26,189,917		25,360,452		25,744,344		25,387,389
Effect of dilutive options		12,513		33,030		12,487		21,870
Diluted weighted average common shares outstanding		26,202,430		25,393,482		25,756,831		25,409,259
Earnings per share
Net earnings - basic	$	0.40	$	0.33	$	1.14	$	0.97
Net earnings - diluted	$	0.40	$	0.33	$	1.14	$	0.97
Cash dividends	$	0.225	$	0.200	$	0.650	$	0.575