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, 2018						Three Months Ended July 31, 2017
	Class A Common Shares			Class B Common Shares			Class A Common Shares			Class B Common Shares
Distributed earnings	$	0.11		$	0.11		$	0.11		$	0.11
Undistributed earnings		(0.06	)		(0.06	)		(0.02	)		(0.02	)

Total	$	0.05		$	0.05		$	0.09		$	0.09

Distributed earnings	$	3,189		$	211		$	3,014		$	256
Undistributed earnings		(1,890	)		(125	)		(502	)		(43	)

Total	$	1,299		$	86		$	2,512		$	213

Basic weighted average common shares outstanding		28,814			1,911			27,307			2,364

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

Three Months Ended July 31, 2018


	Undistributed & Distributed Earnings to Class A Common Shares		Class A Common Shares		EPS*
Per Basic	$	1,299		28,814	$	0.05
Common Stock Equivalents		—		618		—

		1,299		29,432		0.04
Class B Common Share Conversion		86		1,911		—

Diluted EPS for Class A Common Shares	$	1,385		31,343	$	0.04

Three Months Ended July 31, 2017


	Undistributed & Distributed Earnings to Class A Common Shares		Class A Common Shares		EPS*
Per Basic	$	2,512		27,307	$	0.09
Common Stock Equivalents		—		318		—

		2,512		27,625		0.09
Class B Common Share Conversion		213		2,364		—

Diluted EPS for Class A Common Shares	$	2,725		29,989	$	0.09

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

Three Months Ended July 31, 2018


	Undistributed & Distributed Earnings to Class B Common Shares		Class B Common Shares		EPS*
Per Basic	$	86		1,911	$	0.05
Reallocation of undistributed earnings to Class A Common Shares from Class B Common Shares		2		—		—

Diluted EPS for Class B Common Shares	$	88		1,911	$	0.05

Three Months Ended July 31, 2017


	Undistributed & Distributed Earnings to Class B Common Shares		Class B Common Shares		EPS*
Per Basic	$	213		2,364	$	0.09
Reallocation of undistributed earnings to Class B Common Shares from Class A Common Shares		—		—		—

Diluted EPS for Class B Common Shares	$	213		2,364	$	0.09

*	Amounts adjusted for rounding

For the three months ended July 31, 2018 and 2017, we excluded options to purchase 130 and 1,024,917 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, 2018, we had a total of 3,535,823 options outstanding and, as of July 31, 2017, we had a total of 3,833,630 options outstanding.