Earnings Per Share

9 Months Ended

May 31, 2016

EARNINGS PER SHARE

Basic earnings per share is computed by dividing income available to common stockholders by the weighted-average number of shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if common stock equivalents are exercised as well as the impact of restricted stock awards expected to vest, which combined would then share in the earnings of the Company.

Dividends on convertible special stock that an issuer has paid or intends to pay are deducted from net income or added to the amount of a net loss in computing income available to common stockholders.

The difference between basic and diluted weighted-average shares results from the assumed exercise of outstanding stock options and vesting of restricted stock awards, calculated using the treasury stock method, and the inclusion of the convertible special stock dividends, calculated using the if-converted method.

The Company computes income available to common stockholders by deducting dividends accumulated on the convertible special stock from income (loss) from continuing operations and net income (loss). The convertible special stock does not impact the denominator of basic EPS. The dilutive effect of convertible special stock is reflected in diluted EPS by application of the if-converted method. In applying the if-converted method, conversion shall not be assumed for purposes of computing diluted EPS if the effect would be anti-dilutive. The convertible special stock is anti-dilutive whenever the amount of the dividend declared in or accumulated for the current period per share on conversion exceeds basic EPS. For the three and nine months ended May 31, 2016, the accumulated dividend per share on conversion exceeded basic EPS, therefore the 2,388,913 shares related to the convertible special stock were considered anti-dilutive.

The following table presents the number of incremental weighted-average shares used in computing diluted per share amounts:



	Three months ended May 31,		Nine months ended May 31,
	2016	2015	2016	2015
	(In thousands)
Weighted-average shares outstanding:
Basic	29,339	29,219	29,284	29,125
Incremental shares from equity awards	135	—	175	422
Incremental shares from convertible special stock	—	—	—	—
Diluted	29,474	29,219	29,459	29,547

Diluted weighted-average shares outstanding for the three and nine months ended May 31, 2016 excludes approximately 1,000 and 5,000 shares respectively, related to equity awards, as their inclusion would have been anti-dilutive. For the three months ended May 31, 2015 approximately 300,000 shares related to equity awards were excluded, as their inclusion would have been anti-dilutive.