Earnings per share

3 Months Ended

Feb. 28, 2023

We compute basic earnings per share using the weighted average number of common shares outstanding. We compute diluted earnings per share using the weighted average number of common shares outstanding plus the effect of outstanding dilutive stock options, restricted stock units and deferred stock units, using the treasury stock method. The following table sets forth the calculation of basic and diluted earnings per share on an interim basis (in thousands, except per share data):


	Three Months Ended
	February 28, 2023		February 28, 2022
Net income	$	23,674	$	20,454
Weighted average shares outstanding	43,300		43,981
Basic earnings per common share	$	0.55	$	0.47

Diluted earnings per common share:
Net income	$	23,674	$	20,454
Weighted average shares outstanding	43,300		43,981
Effect of dilution from common stock equivalents	1,053		727
Diluted weighted average shares outstanding	44,353		44,708
Diluted earnings per share	$	0.53	$	0.46

We excluded stock awards representing approximately 340,000 and 1,536,000 shares of common stock from the calculation of diluted earnings per share in the three months ended February 28, 2023 and February 28, 2022, respectively, as these awards were anti-dilutive.

The dilutive impact of the Notes on our calculation of diluted earnings per share is considered using the if-converted method. However, because the principal amount of the Notes must be settled in cash, the dilutive impact of applying the if-converted method is limited to the in-the-money portion, if any, of the Notes. During the three months ended February 28, 2023, we did not include the Notes in our diluted earnings per share calculation because the conversion feature in the Notes was out of the money.