Earnings Per Share

6 Months Ended

May 31, 2025

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 and the effect of our convertible debt using the if-converted method. The following table sets forth the calculation of basic and diluted earnings per share on an interim basis:


	Three Months Ended				Six Months Ended
(in thousands, except per share data)	May 31, 2025		May 31, 2024		May 31, 2025		May 31, 2024
Net income	$	17,029	$	16,188	$	27,975	$	38,827
Weighted average shares outstanding	43,053		43,213		43,154		43,508
Effect of dilution from common stock equivalents	1,043		751		1,104		887
Effect of dilution from if-converted convertible notes	60		—		264		—
Diluted weighted average shares outstanding	44,156		43,964		44,522		44,395

Earnings per share:
Basic	$	0.40	$	0.37	$	0.65	$	0.89
Diluted	$	0.39	$	0.37	$	0.63	$	0.87

We excluded stock awards representing approximately 776,000 and 586,000 shares of common stock, respectively, from the calculation of diluted earnings per share in the three and six months ended May 31, 2025 as these awards were anti-dilutive. We excluded stock awards representing approximately 1,273,000 and 993,000 shares of common stock, respectively, from the calculation of diluted earnings per share in the three and six months ended May 31, 2024, as these awards were anti-dilutive.

The dilutive impact of the Notes on our calculation of diluted earnings per share is measured using the if-converted method. However, because the principal amount of the Notes will be settled in cash, the dilutive impact of applying the if-converted method is limited to the in-the-money portion, if any. During the three and six months ended May 31, 2025, we included the 2026 Notes in our diluted earnings per share calculation and we excluded the 2030 Notes in our diluted earnings per share calculation because the conversion feature in the 2030 Notes was out of the money. During the three and six months ended May 31, 2024, 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.