Earnings per share

9 Months Ended

Aug. 31, 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				Nine Months Ended
	August 31, 2023		August 31, 2022		August 31, 2023		August 31, 2022
Net income	$	19,098	$	21,797	$	54,862	$	71,361
Weighted average shares outstanding	43,452		43,211		43,365		43,589
Basic earnings per common share	$	0.44	$	0.50	$	1.27	$	1.64

Diluted earnings per common share:
Net income	$	19,098	$	21,797	$	54,862	$	71,361
Weighted average shares outstanding	43,452		43,211		43,365		43,589
Effect of dilution from common stock equivalents	1,353		724		1,178		710
Effect of dilution from if-converted Convertible Senior Notes	176		—		—		—
Diluted weighted average shares outstanding	44,981		43,935		44,543		44,299
Diluted earnings per share	$	0.42	$	0.50	$	1.23	$	1.61

We excluded stock awards representing approximately 252,000 and 286,000 shares of common stock from the calculation of diluted earnings per share in the three and nine months ended August 31, 2023, respectively, as these awards were anti-dilutive. We excluded stock awards representing approximately 1,777,000 and 1,739,000 shares of common stock from the calculation

of diluted earnings per share in the three and nine months ended August 31, 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. For the three months ended August 31, 2023, the average daily closing price of the Company's common stock was greater than the conversion price for the Notes outstanding as of August 31, 2023. Therefore, for this period, the Company applied the if-converted method for calculating diluted earnings per common share. During the nine months ended August 31, 2023, the average daily closing price of the Company's common stock was less than the conversion price for the Notes. Therefore, for this period, the Notes had no impact on the computation of diluted earnings per common share.