D. Earnings Per Common Share

We have two classes of common stock, of which 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 January 31, 2017						Nine Months Ended January 31, 2017
	Class A			Class B			Class A			Class B
Distributed earnings	$	0.11		$	0.11		$	0.32		$	0.32
Undistributed earnings		(0.03	)		(0.03	)		(0.17	)		(0.17	)

Total	$	0.08		$	0.08		$	0.15		$	0.15

Distributed earnings	$	2,943		$	267		$	8,583		$	778
Undistributed earnings		(887	)		(80	)		(4,596	)		(422	)

Total	$	2,056		$	187		$	3,987		$	356

Basic weighted average common shares outstanding		26,901			2,432			26,687			2,448

	Three Months Ended January 31, 2016						Nine Months Ended January 31, 2016
	Class A			Class B			Class A			Class B
Distributed earnings	$	0.10		$	0.10		$	0.30		$	0.30
Undistributed earnings		(0.03	)		(0.03	)		(0.06	)		(0.06	)

Total	$	0.07		$	0.07		$	0.24		$	0.24

Distributed earnings	$	2,626		$	259		$	7,841		$	776
Undistributed earnings		(704	)		(70	)		(1,620	)		(161	)

Total	$	1,922		$	189		$	6,221		$	615

Basic weighted average common shares outstanding		26,191			2,587			26,097			2,587

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

Three Months Ended January 31, 2017


	Undistributed & Distributed Earnings to Class A Common		Class A Common Shares		EPS*
Per Basic	$	2,056		26,901	$	0.08
Common Stock Equivalents		—		297		—

		2,056		27,198		0.08
Class B Conversion		187		2,432		—

Diluted EPS for Class A Common Shares	$	2,243		29,630	$	0.08

Nine Months Ended January 31, 2017


	Undistributed & Distributed Earnings to Class A Common		Class A Common Shares		EPS*
Per Basic	$	3,987		26,687	$	0.15
Common Stock Equivalents		—		312		—

		3,987		26,999		0.15
Class B Conversion		357		2,448		—

Diluted EPS for Class A Common Shares	$	4,343		29,447	$	0.15

Three Months Ended January 31, 2016


	Undistributed & Distributed Earnings to Class A Common		Class A Common Shares		EPS
Per Basic	$	1,922		26,191	$	0.07
Common Stock Equivalents		—		329		—

		1,922		26,520		0.07
Class B Conversion		189		2,587		—

Diluted EPS for Class A	$	2,111		29,107	$	0.07

Nine Months Ended January 31, 2016


	Undistributed & Distributed Earnings to Class A Common		Class A Common Shares		EPS
Per Basic	$	6,221		26,097	$	0.24
Common Stock Equivalents		—		289		—

		6,221		26,386		0.24
Class B Conversion		615		2,587		—

Diluted EPS for Class A	$	6,836		28,973	$	0.24

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

Three Months Ended January 31, 2017


	Undistributed & Distributed Earnings to Class B Common		Class B Common Shares		EPS*
Per Basic	$	187		2,432	$	0.08
Reallocation of undistributed earnings to Class A Common Shares from Class B Common Shares		2		—		—

Diluted EPS for Class B Common Shares	$	189		2,432	$	0.08

Nine Months Ended January 31, 2017


	Undistributed & Distributed Earnings to Class B Common		Class B Common Shares		EPS*
Per Basic	$	356		2,448	$	0.15
Reallocation of undistributed earnings to Class B Common Shares from Class A Common Shares		6		—		—

Diluted EPS for Class B Common Shares	$	362		2,448	$	0.15

Three Months Ended January 31, 2016


	Undistributed & Distributed Earnings to Class B Common		Class B Common Shares		EPS
Per Basic	$	189		2,587	$	0.07
Reallocation of undistributed loss to Class A shares from Class B shares		1		—		—

Diluted EPS for Class B	$	190		2,587	$	0.07

Nine Months Ended January 31, 2016


	Undistributed & Distributed Earnings to Class B Common		Class B Common Shares		EPS
Per Basic	$	615		2,587	$	0.24
Reallocation of undistributed earnings to Class A shares from Class B shares		2		—		—

Diluted EPS for Class B	$	617		2,587	$	0.24

*	Amounts adjusted for rounding

For the three and nine months ended January 31, 2017, we excluded options to purchase 374,439 and 337,500 Class A Common Shares, respectively, and for the three and nine months ended January 31, 2016, we excluded options to purchase 63,435 and 1,346,761 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 January 31, 2017, we had a total of 3,230,575 options outstanding and, as of January 31, 2016, we had a total of 3,508,719 options outstanding.