Earnings (Loss) Per Share

6 Months Ended

Feb. 28, 2013

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

12—EARNINGS (LOSS) PER SHARE

All outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends participate in undistributed earnings with common shareholders and, therefore, are included in computing earnings per share under the two-class method. Under the two-class method, net earnings are reduced by the amount of dividends declared in the period for each class of common stock and participating security. The remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends. Restricted stock awards granted to certain employees and directors under the Company’s 2006 Incentive Plan, which contain non-forfeitable rights to dividends at the same rate as common stock, are considered participating securities.

Basic earnings (loss) per share reflect only the weighted average common shares outstanding during the period. Diluted earnings (loss) per share reflect weighted average common shares outstanding and the effect of any dilutive common stock equivalent shares. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the average common shares outstanding plus additional common shares that would have been outstanding assuming the exercise of in-the-money stock options, using the treasury stock method. The following table presents the reconciliation of income from operations to income from operations applicable to common shares and the computation of diluted weighted average shares outstanding.

	Three months ended						Six months ended
	February 28, 2013			February 29, 2012			February 28, 2013			February 29, 2012
	(In thousands)						(In thousands)
Numerator:
Net income (loss)	$	1,191		$	(340	)	$	2,897		$	252
Less: Allocation to participating securities		(4	)		—			(10	)		(1	)
Net income (loss) applicable to common shares	$	1,187		$	(340	)	$	2,887		$	251
Denominator:
Weighted average common shares outstanding, basic		12,343			12,300			12,325			12,288
Dilutive stock options and awards		160			—			114			39
Weighted average common shares outstanding, diluted		12,503			12,300			12,439			12,327

For the three months ended February 29, 2012, there were 42,115 weighted-average restricted stock awards excluded from the calculation of diluted earnings (loss) per share because they were antidilutive.

Weighted-average stock options to purchase 987,885 and 972,581 shares of common stock for the three and six months ended February 28, 2013, were excluded from the calculation of diluted earnings (loss) per share because they were antidilutive. Weighted-average stock options to purchase 1,528,779 and 1,414,139 shares of common stock for the three and six months ended February 29, 2012, were excluded from the calculation of diluted earnings (loss) per share because they were antidilutive.