Earnings Per Share

3 Months Ended

May 31, 2024

3. 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.

On April 30, 2024, we completed a secondary offering in which we sold 4.6 million common shares. The weighted average number of shares for the period outstanding for the three months ended May 31, 2024 are included in weighted average shares outstanding for basic earnings per share. See Note 14. Following the secondary offering, there were 29.8 million common shares outstanding.

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


	Three Months Ended May 31,
	2024		2023
Numerator:
Net income	$	39,602	$	28,522
Dividends on Series A Preferred Stock	(1,200)		(3,600)
Redemption premium on Series A Preferred Stock	(75,198)		—
Numerator for basic earnings per share	$	(36,796)	$	24,922

Dividends on Series A Preferred Stock	—		3,600
Numerator for diluted earnings per share	$	(36,796)	$	28,522








Denominator:
Weighted average shares outstanding for basic earnings per share	26,751		24,940
Effect of dilutive securities:
Employee and director stock awards	—		93

Series A Convertible Preferred Stock	—		4,117
Denominator for diluted earnings per share	26,751		29,150




Basic earnings (loss) per common share	$	(1.38)	$	1.00



Diluted earnings (loss) per common share	$	(1.38)	$	0.98

For the three months ended May 31, 2024 and 2023, there were 310,787 and 121,509 shares, respectively, related to employee equity awards that were excluded from the computation of diluted earnings per share, as their effect would have been anti-dilutive. For the three months ended May 31, 2024, all shares related to the Series A Convertible Preferred Stock (3.1 million weighted average shares) were excluded from the computation of diluted earnings per share, as their effect would be anti-dilutive. These shares could be dilutive in future periods.