Earnings Per Share

9 Months Ended

Nov. 30, 2023

5. 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 November 30,				Nine Months Ended November 30,
	2023		2022		2023		2022
Numerator:
Net income from continuing operations	$	26,890	$	18,439	$	83,744	$	58,912
Dividends on preferred stock	(3,600)		(3,600)		(10,800)		(4,640)
Numerator for basic earnings per share continuing operations	$	23,290	$	14,839	$	72,944	$	54,272

Dividends on preferred stock	3,600		—		10,800		—
Numerator for diluted earnings per share continuing operations	$	26,890	$	14,839	$	83,744	$	54,272

Net loss from discontinued operations	$	—	$	(38,981)	$	—	$	(112,947)

Net income (loss) available to common shareholders	$	23,290	$	(24,142)	$	72,944	$	(58,675)

Dividends on preferred stock	3,600		—		10,800		—
Numerator for diluted earnings per share—net income (loss) available to common shareholders	$	26,890	$	(24,142)	$	83,744	$	(58,675)

Denominator:
Weighted average shares outstanding for basic earnings per share	25,077		24,867		25,024		24,804
Effect of dilutive securities:
Employee and director stock awards	136		128		137		180

Series A Convertible Preferred Stock	4,117		—		4,117		—
Denominator for diluted earnings per share	29,330		24,995		29,278		24,984

Basic earnings (loss) per share
Earnings per common share from continuing operations	$	0.93	$	0.60	$	2.91	$	2.19
Loss per common share from discontinued operations	$	—	$	(1.57)	$	—	$	(4.55)
Earnings (loss) per common share	$	0.93	$	(0.97)	$	2.91	$	(2.37)
Diluted earnings (loss) per share
Earnings per common share from continuing operations	$	0.92	$	0.59	$	2.86	$	2.17
Loss per common share from discontinued operations	$	—	$	(1.56)	$	—	$	(4.52)
Earnings (loss) per common share	$	0.92	$	(0.97)	$	2.86	$	(2.35)

For the three months ended November 30, 2023 and 2022, approximately 120,819 and 103,403 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 nine months ended November 30, 2023 and 2022, 126,356 and 78,862 shares, respectively, were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive. In addition, all shares related to the Series A Convertible Preferred Stock (4.1 million weighted average shares) were excluded from the computation of diluted earnings per share for the three and nine months ended November 30, 2022, as their effect would have been anti-dilutive. These shares could be dilutive in future periods.