Earnings Per Share

6 Months Ended

Nov. 30, 2016

NOTE 11 Earnings Per Share

Basic earnings per common share is computed based on the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed based on the combination of dilutive common share equivalents, comprised of shares issuable under the Corporation’s Stock Incentive Plan and the weighted-average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money options to purchase shares, which is calculated based on the average share price for each period using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except per share amounts):


	Three-Months Ended					Six-Months Ended
	November 30,					November 30,
	2016			2015		2016		2015
Net income (loss)	$	(595	)	$	1,706	$	149	$	872

Weighted average share outstanding:
Basic		8,391,244			8,391,244		8,391,244		8,391,244
Common stock equivalents—treasury stock method		—			—		121,659		—

Diluted		8,391,244			8,391,244		8,512,903		8,391,244
Net income (loss) per share:
Basic	$	(.07	)	$	.20	$	.02	$	.10

Diluted	$	(.07	)	$	.20	$	.02	$	.10

For the second quarters of fiscal 2017 and fiscal 2016, there were 139,532 and 119,225 anti-dilutive common stock equivalents excluded from the computation of diluted earnings per share, respectively. There were 8,727 and 121,217 anti-dilutive common stock equivalents excluded from the computation of diluted earnings per share for the six months ended November 30, 2016 and 2015, respectively.