Earnings Per Share

9 Months Ended

Nov. 30, 2024

3. Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding during each period. 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 period.

On April 30, 2024, we completed a secondary public offering in which we issued 4.6 million common shares. The weighted average number of shares for the period outstanding for the nine months ended November 30, 2024 are included in weighted average shares outstanding for basic earnings per share. See Note 14. As of November 30, 2024, there were 29.9 million common shares outstanding, which includes the shares from the secondary public offering.

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,
	2024		2023		2024		2023
Numerator:
Net income	$	33,603	$	26,890	$	108,624	$	83,744
Series A Preferred Stock Dividends	—		(3,600)		(1,200)		(10,800)
Redemption premium on Series A Preferred Stock	—		—		(75,198)		—
Numerator for basic earnings per share	$	33,603	$	23,290	$	32,226	$	72,944

Series A Preferred Stock Dividends	—		3,600		—		10,800
Numerator for diluted earnings per share	$	33,603	$	26,890	$	32,226	$	83,744








Denominator:
Weighted average shares outstanding for basic earnings per share	29,879		25,077		28,819		25,024
Effect of dilutive securities:
Employee and director stock awards	239		136		257		137

Series A Preferred Stock	—		4,117		—		4,117
Denominator for diluted earnings per share	30,118		29,330		29,076		29,278




Basic earnings per common share	$	1.12	$	0.93	$	1.12	$	2.91



Diluted earnings per common share	$	1.12	$	0.92	$	1.11	$	2.86

For the three months ended November 30, 2024 and 2023, there were 34,824 and 120,819 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 nine months ended November 30, 2024 and 2023, 56,088 and 126,356 shares, 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, 2024, all shares related to the Series A Preferred Stock (1.0 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.