EARNINGS PER SHARE

6 Months Ended

Jan. 31, 2013

EARNINGS PER SHARE

(12) EARNINGS PER SHARE

The Company calculates earnings per share in accordance with ASC Topic 260, “Earnings per Share” and ASC Topic 260-10, formerly FASB Staff Position EITF No. 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities.” Under ASC Topic 260-10, unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. All of the Company’s nonvested shares are considered participating securities because they contain non-forfeitable rights to dividends. However, holders of nonvested shares do not have an obligation to fund losses, and therefore, are only allocated a portion of the earnings for the earnings per share calculation when the Company reports net income.

Under the two-class method, net income is reduced by the amount of dividends declared in the period for each class of common stock and participating securities. The remaining undistributed earnings are then allocated to common stock and participating securities as if all of the net income for the period had been distributed. Basic earnings per share excludes dilution and is calculated by dividing net income allocable to common shares by the weighted average number of common shares outstanding for the period. Diluted earnings per share is calculated by dividing net income allocable to common shares by the weighted-average number of common shares for the period, as adjusted for the potential dilutive effect of non-participating share-based awards. The following table reconciles earnings per share for the three and six months ended January 31, 2013 and 2012.

	Three Months Ended January 31,						Six Months Ended January 31,
	2013			2012			2013			2012
	(In thousands)
BASIC
Loss from continuing operations	$	(12,417	)	$	(12,341	)	$	(22,248	)	$	(9,798	)
Loss from discontinued operations		(133	)		(535	)		(960	)		(1,933	)
Net loss available for basic common shares	$	(12,550	)	$	(12,876	)	$	(23,208	)	$	(11,731	)
Weighted average common shares outstanding		43,654			43,434			43,629			43,367
Basic net loss per common share from continuing operations	$	(0.29	)	$	(0.29	)	$	(0.51	)	$	(0.23	)
Basic net loss per common share from discontinued operations		—			(0.01	)		(0.02	)		(0.04	)
	$	(0.29	)	$	(0.30	)	$	(0.53	)	$	(0.27	)
DILUTED
Loss from continuing operations	$	(12,417	)	$	(12,341	)	$	(22,248	)	$	(9,798	)
Loss from discontinued operations		(133	)		(535	)		(960	)		(1,933	)
Net loss available for diluted common shares	$	(12,550	)	$	(12,876	)	$	(23,208	)	$	(11,731	)
Weighted average common shares outstanding		43,654			43,434			43,629			43,367
Weighted average common equivalent shares arising from dilutive stock options		—			—			—			—
Weighted average number of common and potential common shares		43,654			43,434			43,629			43,367
Diluted net loss per common share from continuing operations	$	(0.29	)	$	(0.29	)	$	(0.51	)	$	(0.23	)
Diluted net loss per common share from discontinued operations		—			(0.01	)		(0.02	)		(0.04	)
	$	(0.29	)	$	(0.30	)	$	(0.53	)	$	(0.27	)

For the three and six months ended January 31, 2013, approximately 2.2 million and 2.3 million, respectively, common stock equivalent shares were excluded from the denominator in the calculation of diluted earnings per share as their inclusion would have been antidilutive.

For the three and six months ended January 31, 2012, approximately 2.9 million and 3.6 million, respectively, common stock equivalent shares were excluded from the denominator in the calculation of diluted earnings per share as their inclusion would have been antidilutive.