D. Earnings Per Common Share

We have two classes of common stock: Class A Common Shares and Class B Common Shares. Our Class B Common Shares are convertible into Class A Common Shares at any time, on a one-for-one basis. Under our Articles of Incorporation, if we declare dividends, holders of Class A Common Shares shall receive a $0.05 dividend per share prior to the Class B Common Shares receiving any dividend and holders of Class A Common Shares shall receive a dividend at least equal to Class B Common Shares dividends on a per share basis. As a result, we have computed the earnings per share in accordance with Earnings Per Share within the Presentation Topic of the FASB’s Accounting Standards Codification, which requires companies that have multiple classes of equity securities to use the “two-class” method in computing earnings per share.

For our basic earnings per share calculation, we use the “two-class” method. Basic earnings per share are calculated by dividing net earnings attributable to each class of common stock by the weighted average number of shares outstanding. All undistributed earnings are allocated evenly between Class A and B Common Shares in the earnings per share calculation to the extent that earnings equal or exceed $0.05 per share. This allocation is based on management’s judgment after considering the dividend rights of the two classes of common stock, the control of the Class B shareholders and the convertibility rights of the Class B Common Shares to Class A Common Shares.

The calculation of diluted earnings per share is similar to the calculation of basic earnings per share, except that the calculation includes the dilutive effect of the assumed exercise of options issuable under our stock incentive plans. For our diluted earnings per share calculation for Class A Common Shares, we use the “if-converted” method. This calculation assumes that all Class B Common Shares are converted into Class A Common Shares (if antidilutive) and, as a result, assumes there are no holders of Class B Common Shares to participate in undistributed earnings.

For our diluted earnings per share calculation for Class B Common Shares, we use the “two-class” method. This calculation does not assume that all Class B Common Shares are converted into Class A Common Shares. In addition, this method assumes the dilutive effect if Class A stock options were converted to Class A Common Shares and the undistributed earnings are allocated evenly to both Class A and B Common Shares including Class A Common Shares issued pursuant to those converted stock options. This allocation is based on management’s judgment after considering the dividend rights of the two classes of common stock, the control of the Class B shareholders and the convertibility rights of the Class B Common Shares into Class A Common Shares.

The following tables set forth the computation of basic earnings per common share and diluted earnings per common share (in thousands except for per share amounts):

Basic earnings per common share:


	Three Months Ended July 31, 2016						Three Months Ended July 31, 2015
	Class A Common Shares			Class B Common Shares			Class A Common Shares			Class B Common Shares
Distributed earnings	$	0.11		$	0.11		$	0.10		$	0.10
Undistributed earnings		(0.05	)		(0.05	)		(0.01	)		(0.01	)

Total	$	0.06		$	0.06		$	0.09		$	0.09

Distributed earnings	$	2,933		$	268		$	2,604		$	259
Undistributed earnings		(1,383	)		(130	)		(264	)		(27	)

Total	$	1,550		$	138		$	2,340		$	232

Basic weighted average common shares outstanding		26,457			2,481			26,027			2,587

Diluted EPS for Class A Common Shares Using the If-Converted Method

Three Months Ended July 31, 2016


	Undistributed & Distributed Earnings to Class A Common Shares		Class A Common Shares		EPS*
Per Basic	$	1,550		26,457	$	0.06
Common Stock Equivalents		—		316		—

		1,550		26,773		0.06
Class B Common Share Conversion		138		2,481		—

Diluted EPS for Class A Common Shares	$	1,688		29,254	$	0.06

Three Months Ended July 31, 2015


	Undistributed & Distributed Earnings to Class A Common Shares		Class A Common Shares		EPS*
Per Basic	$	2,340		26,027	$	0.09
Common Stock Equivalents		—		268		—

		2,340		26,295		0.09
Class B Common Share Conversion		232		2,587		—

Diluted EPS for Class A Common Shares	$	2,572		28,882	$	0.09

Diluted EPS for Class B Common Shares Using the Two-Class Method

Three Months Ended July 31, 2016


	Undistributed & Distributed Earnings to Class B Common Shares		Class B Common Shares		EPS*
Per Basic	$	138		2,481	$	0.06
Reallocation of undistributed earnings to Class A Common Shares from Class B Common Shares		2		—		—

Diluted EPS for Class B Common Shares	$	140		2,481	$	0.06

Three Months Ended July 31, 2015


	Undistributed & Distributed Earnings to Class B Common Shares		Class B Common Shares		EPS*
Per Basic	$	232		2,587	$	0.09
Reallocation of undistributed earnings to Class B Common Shares from Class A Common Shares		—		—		—

Diluted EPS for Class B Common Shares	$	232		2,587	$	0.09

*	Amounts adjusted for rounding

For the three months ended July 31, 2016 and 2015, we excluded options to purchase 855,439 and 1,016,500 Class A Common Shares, respectively, from the computation of diluted earnings per Class A Common Shares. We excluded these option share amounts because the exercise prices of those options were greater than the average market price of the Class A Common Shares during the applicable period. As of July 31, 2016, we had a total of 3,599,581 options outstanding and, as of July 31, 2015, we had a total of 3,011,169 options outstanding.