Net Income Per Share

9 Months Ended

May 31, 2022

Net Income Per Share

Net Income Per Share

Note 4 — Net Income Per Share

The Company has unvested share-based payment awards with a right to receive nonforfeitable dividends which are considered participating securities under ASC Topic 260, “Earnings Per Share.” The Company allocates earnings to participating securities and computes earnings per share using the two-class method. The determination of earnings per share under the two-class method is as follows:

	Three Months Ended May 31,				Nine Months Ended May 31,
	2022		2021		2022		2021
Basic Earnings per Share
Net income	$	15,545	$	14,289	$	34,398	$	34,297
Less: Allocated to participating securities		104		94		228		239
Net income available to common shareholders	$	15,441	$	14,195	$	34,170	$	34,058
Basic weighted average shares outstanding		9,399,231		9,386,814		9,398,778		9,381,433
Net income per share - Basic	$	1.64	$	1.51	$	3.64	$	3.63
Diluted Earnings per Share
Net income	$	15,545	$	14,289	$	34,398	$	34,297
Less: Allocated to participating securities		104		94		228		239
Net income available to common shareholders	$	15,441	$	14,195	$	34,170	$	34,058
Basic weighted average shares outstanding		9,399,231		9,386,814		9,398,778		9,381,433
Additional dilutive common stock equivalents		32,028		48,521		36,591		45,446
Diluted weighted average shares outstanding		9,431,259		9,435,335		9,435,369		9,426,879
Net income per share - Diluted	$	1.64	$	1.50	$	3.62	$	3.61

Included in the calculation of dilutive common stock equivalents are the unvested portion of restricted stock and stock options. For the three- and nine-month periods ended May 31, 2022, stock options to purchase 108,392 and 93,869 shares of common stock, respectively, were outstanding but were not included in the calculation of diluted income per share because their inclusion would be anti-dilutive. For the three- and nine-month periods ended May 31, 2021, stock options to purchase 17,947 and 59,346 shares of common stock, respectively, were outstanding but were not included in the calculation of diluted income per share because their inclusion would be anti-dilutive.