Net Earnings Per Share

9 Months Ended

May 31, 2020

Note 4 – 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. When a period results in a net loss, the impact of outstanding stock awards is excluded from the diluted loss per share calculation as the inclusion would have an anti-dilutive effect.

The following table shows the computation of basic and diluted net earnings per share for the three and nine months ended May 31, 2020 and May 31, 2019:

	Three months ended				Nine months ended
($ and shares in thousands, except per share amounts)	May 31, 2020		May 31, 2019		May 31, 2020		May 31, 2019
Numerator:
Net earnings	$	10,094	$	2,897	$	23,955	$	669

Denominator:
Weighted average shares outstanding		10,835		10,786		10,818		10,779
Diluted effect of stock awards		42		28		36		28
Weighted average shares outstanding assuming dilution		10,877		10,814		10,854		10,807

Basic net earnings per share	$	0.93	$	0.27	$	2.21	$	0.06
Diluted net earnings per share	$	0.93	$	0.27	$	2.21	$	0.06

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. In addition, 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
(Units and options in thousands)	May 31, 2020		May 31, 2019		May 31, 2020		May 31, 2019
Restricted stock units		3		—		9		11
Stock options		115		88		42		66
Performance stock units		—		—		7		3