Earnings Per Share

6 Months Ended

Jul. 31, 2016

Earnings Per Share

Basic earnings per share are based on the weighted average number of common shares outstanding without consideration of common stock equivalents. Diluted earnings per share are based on the weighted average number of common shares and common stock equivalents. The diluted earnings per share calculation takes into account unvested restricted shares and the shares that may be issued upon exercise of stock options, reduced by shares that may be repurchased with the funds received from the exercise, based on the average price during the period.

The following table sets forth the computation of basic and diluted earnings per share for “income from continuing operations” and “discontinued operations” at July 31, 2016 and 2015, as follows:

	Three Months Ended				Six Months Ended
	July 31,				July 31,
	(in $000s)				(in $000s)
	2016		2015		2016		2015
Numerator
Net income from continuing operations	$	1,431	$	3,588	$	1,434	$	5,748
Net loss from discontinued operations		—		(1,554)		—		(2,485)
Net income	$	1,431	$	2,034	$	1,434	$	3,263
Denominator
Denominator for basic earnings per share (weighted-average shares which reflect 356,441 shares in the treasury as a result of the stock repurchase program that ended in 2011)		7,254,999		7,145,418		7,254,585		7,104,471
Effect of dilutive securities from restricted stock plan and from dilutive effect of stock options		56,167		21,705		61,282		86,998
Denominator for diluted earnings per share (adjusted weighted average shares)		7,311,166		7,167,123		7,315,867		7,191,469
Basic earnings per share from continuing operations	$	0.20	$	0.50	$	0.20	$	0.81
Basic loss per share from discontinued operations	$	—	$	(0.22)	$	—	$	(0.35)
Basic earnings per share	$	0.20	$	0.28	$	0.20	$	0.46
Diluted earnings per share from continuing operations	$	0.20	$	0.50	$	0.20	$	0.80
Diluted loss per share from discontinued operations	$	—	$	(0.22)	$	—	$	(0.35)
Diluted earnings per share	$	0.20	$	0.28	$	0.20	$	0.45