Net Earnings Per Share

9 Months Ended

May 31, 2016

Note 3 – Net Earnings per Share

Basic earnings per share is calculated on the basis of weighted average outstanding common shares. Diluted earnings per share is calculated on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options, restricted stock unit awards and other dilutive securities.

The following table shows the computation of basic and diluted net earnings per share for the three and nine months ended May 31, 2016 and May 31, 2015:


	Three months ended				Nine months ended
	May 31,		May 31,		May 31,		May 31,
($ and shares in thousands, except per share amounts)	2016		2015		2016		2015
Numerator:
Net earnings	$	9,644	$	12,927	$	12,459	$	29,490
Denominator:
Weighted average shares outstanding		10,709		11,690		10,997		11,965
Diluted effect of stock awards		23		30		22		35
Weighted average shares outstanding assuming dilution		10,732		11,720		11,019		12,000

Basic net earnings per share	$	0.90	$	1.11	$	1.13	$	2.46
Diluted net earnings per share	$	0.90	$	1.10	$	1.13	$	2.46

Certain stock options and restricted stock units were excluded from the computation of diluted net earnings per share because their effect would have been anti-dilutive. Performance stock units are excluded from the calculation of dilutive potential common shares until the threshold performance conditions have been satisfied. The following table shows the securities excluded from the computation of earnings per share because their effect would have been anti-dilutive:


	Three months ended		Nine months ended
	May 31,	May 31,	May 31,	May 31,
Units and options in thousands	2016	2015	2016	2015
Restricted stock units	1	-	6	4
Stock options	104	47	84	52