Earnings Per Common Share

The Company has two classes of common stock. Class B common shares are convertible into Class A common shares at any time, on a one-for-one basis. Under the Company’s Articles of Incorporation, if dividends are declared, 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, the Company has computed the earnings per share in compliance with the Earnings Per Share Topic of the FASB ASC, which requires companies that have multiple classes of equity securities to use the “two-class” method in computing earnings per share.

For the Company’s basic earnings per share calculation, the Company uses 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 shares to Class A shares. If Class B shares convert to Class A shares during the period, the distributed net earnings for Class B shares is calculated using the weighted average common shares outstanding during the period.

Diluted earnings per share is calculated similarly to basic earnings per share, except that the calculation includes the dilutive effect of the assumed exercise of options issuable under the Company’s stock incentive plans. For the Company’s diluted earnings per share calculation for Class A shares, the Company uses the “if-converted” method. This calculation assumes that all Class B common shares are converted into Class A common shares and, as a result, assumes there are no holders of Class B common shares to participate in undistributed earnings.

For the Company’s diluted earnings per share calculation for Class B shares, the Company uses 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 of Class A stock options were converted to Class A shares and the undistributed earnings are allocated evenly to both Class A and B shares including Class A 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 shares into Class A 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, 2020						Nine Months Ended January 31, 2020
	Class A Common Shares			Class B Common Shares			Class A Common Shares			Class B Common Shares
Distributed earnings	$	0.11		$	0.11		$	0.33		$	0.33
Undistributed losses	(0.01		)	(0.01		)	(0.13		)	(0.13		)
Total	$	0.10		$	0.10		$	0.20		$	0.20
Distributed earnings	$	3,321		$	201		$	9,873		$	604
Undistributed losses	(223		)	(13		)	(4,033		)	(247		)
Total	$	3,098		$	188		$	5,840		$	357
Basic weighted average common shares outstanding	30,133			1,822			29,789			1,822



	Three Months Ended January 31, 2019						Nine Months Ended January 31, 2019
	Class A Common Shares			Class B Common Shares			Class A Common Shares			Class B Common Shares
Distributed earnings	$	0.11		$	0.11		$	0.33		$	0.33
Undistributed losses	(0.04		)	(0.04		)	(0.17		)	(0.17		)
Total	$	0.07		$	0.07		$	0.16		$	0.16
Distributed earnings	$	3,213		$	204		$	9,609		$	613
Undistributed losses	(1,047		)	(69		)	(4,974		)	(319		)
Total	$	2,166		$	135		$	4,635		$	294
Basic weighted average common shares outstanding	29,188			1,822			29,036			1,851

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

Three Months Ended January 31, 2020



	Undistributed & Distributed Earnings to Class A Common Shares		Class A Common Shares	EPS*
Per Basic	$	3,098	30,133	$	0.10
Common Stock Equivalents	—		713	—
	3,098		30,846	0.10
Class B Common Share Conversion	188		1,822	—
Diluted EPS for Class A Common Shares	$	3,286	32,668	$	0.10

Nine Months Ended January 31, 2020



	Undistributed & Distributed Earnings to Class A Common Shares		Class A Common Shares	EPS*
Per Basic	$	5,840	29,789	$	0.20
Common Stock Equivalents	—		649	—
	5,840		30,438	0.19
Class B Common Share Conversion	357		1,822	—
Diluted EPS for Class A Common Shares	$	6,197	32,260	$	0.19

Three Months Ended January 31, 2019



	Undistributed & Distributed Earnings to Class A Common Shares		Class A Common Shares	EPS*
Per Basic	$	2,166	29,188	$	0.07
Common Stock Equivalents	—		173	—
	2,166		29,361	0.07
Class B Common Share Conversion	135		1,822	—
Diluted EPS for Class A Common Shares	$	2,301	31,183	$	0.07

Nine Months Ended January 31, 2019



	Undistributed & Distributed Earnings to Class A Common Shares		Class A Common Shares	EPS*
Per Basic	$	4,635	29,036	$	0.16
Common Stock Equivalents	—		464	—
	4,635		29,500	0.16
Class B Common Share Conversion	294		1,851	—
Diluted EPS for Class A Common Shares	$	4,929	31,351	$	0.16

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

Three Months Ended January 31, 2020



	Undistributed & Distributed Earnings to Class B Common Shares		Class B Common Shares	EPS*
Per Basic	$	188	1,822	$	0.10
Reallocation of undistributed earnings/losses from Class A Common Shares to Class B Common Shares	—		—	—
Diluted EPS for Class B Common Shares	$	188	1,822	$	0.10

Nine Months Ended January 31, 2020



	Undistributed & Distributed Earnings to Class B Common Shares		Class B Common Shares	EPS*
Per Basic	$	357	1,822	$	0.20
Reallocation of undistributed earnings/losses from Class A Common Shares to Class B Common Shares	5		—	—
Diluted EPS for Class B Common Shares	$	362	1,822	$	0.20

Three Months Ended January 31, 2019



	Undistributed & Distributed Earnings to Class B Common Shares		Class B Common Shares	EPS*
Per Basic	$	135	1,822	$	0.07
Reallocation of undistributed earnings/losses from Class A Common Shares to Class B Common Shares	1		—	—
Diluted EPS for Class B Common Shares	$	136	1,822	$	0.07

Nine Months Ended January 31, 2019



	Undistributed & Distributed Earnings to Class B Common Shares		Class B Common Shares	EPS*
Per Basic	$	294	1,851	$	0.16
Reallocation of undistributed earnings/losses from Class A Common Shares to Class B Common Shares	1		—	—
Diluted EPS for Class B Common Shares	$	295	1,851	$	0.16

*Amounts adjusted for rounding

For the three and nine months ended January 31, 2020, we excluded options to purchase 26,000 and 278,116 Class A Common Shares, respectively, and for the three and nine months ended January 31, 2019, we excluded options to purchase 2,416,421 and 464,475 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, 2020, we had a total of 3,998,128 options outstanding and as of January 31, 2019, we had a total of 4,017,123 options outstanding.