Earnings per Share

6 Months Ended

Feb. 28, 2017

Note 4. Earnings per Share

The following is a reconciliation of the numerators and denominators of the basic and diluted computations for earnings per common share (in thousands, except per share data):

	Three Months Ended				Six Months Ended
	February 28,		February 29,		February 28,		February 29,
	2017		2016		2017		2016
(In thousands, except share and per share amounts)
EPS:
Net income	$	748	$	731	$	1,408	$	1,231
Less: accrued preferred stock dividends		(19)		(19)		(38)		(38)
Net income available for common shareholders	$	729	$	712	$	1,370	$	1,193

Earnings per common share – basic and diluted	$	0.15	$	0.15	$	0.28	$	0.25

For the three and six months ended February 28, 2017 and February 29, 2016, 40,000 potential common shares (issuable upon conversion of 36,000 shares of the Company’s Series A Cumulative Convertible Preferred Stock) have been excluded from the computation of diluted earnings per share because their inclusion would be anti-dilutive since the conversion price was greater than the average market price of the common stock.