Earnings Per Share

9 Months Ended

Nov. 30, 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 were converted into common shares during the period.

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


	Three Months Ended November 30,				Nine Months Ended November 30,
	2022		2021		2022		2021
Numerator:
Net income from continuing operations	$	18,439	$	13,107	$	58,912	$	38,988
Dividends on preferred stock	(3,600)		—		(4,640)		—
Net income from continuing operations available to common shareholders	14,839		13,107		54,272		38,988




Net income (loss) from discontinued operations	$	(38,981)	$	7,978	$	(112,947)	$	23,412

Net income (loss) available to common shareholders	$	(24,142)	$	21,085	$	(58,675)	$	62,400



Denominator:
Weighted average shares outstanding for basic earnings per share	24,867		24,729		24,804		24,910
Effect of dilutive securities:
Employee and director stock awards	128		216		180		222


Denominator for diluted earnings per share	24,995		24,945		24,984		25,132

Earnings per common share from continuing operations:
Basic earnings per share	$	0.60	$	0.53	$	2.19	$	1.57
Diluted earnings per share	$	0.59	$	0.53	$	2.17	$	1.55
Earnings per common share from discontinued operations:
Basic earnings per share	$	(1.57)	$	0.32	$	(4.55)	$	0.94
Diluted earnings per share	$	(1.56)	$	0.32	$	(4.52)	$	0.93
Earnings per common share:
Basic earnings per share	$	(0.97)	$	0.85	$	(2.37)	$	2.51
Diluted earnings per share	$	(0.97)	$	0.85	$	(2.35)	$	2.48

For the three months ended November 30, 2022 and 2021, 103,403 and 150,171 shares related to stock-based compensation, respectively, were excluded from the calculation of diluted earnings per share because the effect would be anti-dilutive. For the nine months ended November 30, 2022 and 2021, 78,862 and 137,186 shares related to stock-based compensation, respectively, were excluded from the calculation of diluted earnings per share because the effect would be anti-dilutive. In addition, all shares related to the Series A Convertible Preferred Stock (4.1 million shares) were excluded for the three and nine months ended November 30, 2022 because the effect would be anti-dilutive. These shares could be dilutive in future periods.