Earnings Per Share

6 Months Ended

Aug. 31, 2022

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by giving effect to the potential dilution that could occur if any potentially dilutive securities and were converted into common shares during the period. Potentially dilutive securities include restricted stock units, convertible notes and preferred stock. For the three and six months ended August 31, 2022, all potentially dilutive securities were excluded from diluted earnings per share as their effect would have been anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per share from continuing, discontinued, and consolidated operations (in thousands, except per share data):


	Three Months Ended August 31,				Six Months Ended August 31,
	2022		2021		2022		2021
Numerator:
Net income from continuing operations	$	25,120	$	14,268	$	40,485	$	25,881
Dividends on preferred stock	(1,040)		—		(1,040)		—
Net income from continuing operations available to common shareholders	24,080		14,268		39,445		25,881
After-tax interest expense for Convertible Notes	2,006		—		2,554		—
Dividends on preferred stock	1,040		—		1,040		—
Numerator for diluted earnings per share continuing operations	$	27,126	$	14,268	$	43,039	$	25,881

Net income (loss) from discontinued operations	$	(82,690)	$	4,710	$	(73,978)	$	15,434

Consolidated net income (loss) available to common shareholders	$	(58,610)	$	18,978	$	(34,533)	$	41,315
After-tax interest expense for Convertible Notes	2,006		—		2,554		—
Dividends on preferred stock	1,040		—		1,040		—
Numerator for diluted earnings per share consolidated net income (loss) available to common shareholders	$	(55,564)	$	18,978	$	(30,939)	$	41,315
Denominator:
Weighted average shares outstanding for basic earnings per share	24,836		24,947		24,772		24,999
Effect of dilutive securities:
Employee and director stock awards	106		188		172		217
Convertible Notes	2,953		—		1,902		—
Series A Convertible Preferred Stock	1,164		—		582		—
Denominator for diluted earnings per share	29,059		25,135		27,428		25,216

Earnings per common share from continuing operations:
Basic earnings per share	$	0.97	$	0.57	$	1.59	$	1.04
Diluted earnings per share	$	0.93	$	0.57	$	1.57	$	1.03
Earnings per common share from discontinued operations:
Basic earnings per share	$	(3.33)	$	0.19	$	(2.99)	$	0.62
Diluted earnings per share	$	(2.85)	$	0.19	$	(2.70)	$	0.61
Earnings per common share from consolidated operations:
Basic earnings per share	$	(2.36)	$	0.76	$	(1.39)	$	1.65
Diluted earnings per share	$	(1.91)	$	0.76	$	(1.13)	$	1.64

For the three months ended August 31, 2022 and 2021, 102,616 and 150,171 shares, respectively, were excluded from the calculation of diluted earnings per share because the effect would be antidilutive. For the six months ended August 31, 2022 and 2021, 57,025 and 130,764 shares, respectively, were excluded from the calculation of diluted earnings per share because the effect would be antidilutive. These shares could be dilutive in future periods.