EARNINGS PER SHARE

6 Months Ended

Aug. 31, 2015

NOTE 7 - EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding stock options and restricted stock-based awards using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share (in thousands):

	Three Months Ended		Six Months Ended
	August 31,		August 31,
	2015	2014	2015	2014
Basic weighted average number of common
shares outstanding	36,135	35,732	36,049	35,652
Effect of stock options, restricted stock and restricted
stock units computed on treasury stock method	581	740	642	846
Diluted weighted average number of common
shares outstanding	36,716	36,472	36,691	36,498

Shares underlying stock options of 238,000 and 157,000 at August 31, 2015 and 2014, respectively, were excluded from the calculations of diluted earnings per share for the three and six month periods then ended because based on the exercise prices of these stock options their inclusion would have been anti-dilutive under the treasury stock method.