Earnings Per Share

6 Months Ended

Aug. 31, 2023

4. Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding during each year. Diluted earnings per share is calculated by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the year.

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


	Three Months Ended August 31,				Six Months Ended August 31,
	2023		2022		2023		2022
Numerator:
Net income from continuing operations	$	28,332	$	25,120	$	56,854	$	40,485
Dividends on preferred stock	(3,600)		(1,040)		(7,200)		(1,040)
Numerator for basic earnings per share continuing operations	$	24,732	$	24,080	$	49,654	$	39,445
After-tax interest expense for Convertible Notes	—		2,006		—		2,554
Dividends on preferred stock	3,600		1,040		7,200		1,040
Numerator for diluted earnings per share continuing operations	$	28,332	$	27,126	$	56,854	$	43,039

Net loss from discontinued operations	$	—	$	(82,690)	$	—	$	(73,978)

Net income (loss) available to common shareholders	$	24,732	$	(58,610)	$	49,654	$	(34,533)
After-tax interest expense for Convertible Notes	—		2,006		—		2,554
Dividends on preferred stock	3,600		1,040		7,200		1,040
Numerator for diluted earnings per share—net income (loss) available to common shareholders	$	28,332	$	(55,564)	$	56,854	$	(30,939)

Denominator:
Weighted average shares outstanding for basic earnings per share	25,054		24,836		24,997		24,772
Effect of dilutive securities:
Employee and director stock awards	39		106		82		172
Convertible Notes	—		2,953		—		1,902
Series A Convertible Preferred Stock	4,117		1,164		4,117		582
Denominator for diluted earnings per share	29,210		29,059		29,196		27,428

Basic earnings (loss) per share
Earnings per common share from continuing operations	$	0.99	$	0.97	$	1.99	$	1.59
Loss per common share from discontinued operations	$	—	$	(3.33)	$	—	$	(2.99)
Earnings (loss) per common share	$	0.99	$	(2.36)	$	1.99	$	(1.39)
Diluted earnings (loss) per share
Earnings per common share from continuing operations	$	0.97	$	0.93	$	1.95	$	1.57
Loss per common share from discontinued operations	$	—	$	(2.85)	$	—	$	(2.70)
Earnings (loss) per common share	$	0.97	$	(1.91)	$	1.95	$	(1.13)

For the three months ended August 31, 2023 and 2022, approximately 126,882 and 102,616 shares related to employee equity awards, respectively, were excluded from the computation of diluted earnings per share, as their effect would have been anti-dilutive. For the six months ended August 31, 2023 and 2022, 125,793 and 57,025 shares, respectively, were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive.