Note 7— Earnings (Loss) Per Share

Basic earnings per share is computed by dividing net income attributable to all classes of common stockholders of the Company by the weighted average number of shares of all classes of common stock outstanding during the applicable period. Diluted earnings per share is computed in the same manner as basic earnings per share, except that the number of shares is increased to include restricted stock still subject to risk of forfeiture and to assume exercise of potentially dilutive stock options using the treasury stock method, unless the effect of such increase is anti-dilutive.

The weighted-average number of shares used in the calculation of basic and diluted earnings (loss) per share attributable to the Company’s common stockholders consists of the following:

	Three Months Ended January 31,				Six Months Ended January 31,
	2018		2017		2018		2017
	(in thousands)
Basic weighted-average number of shares		24,643		22,768		24,635		22,740
Effect of dilutive securities:
Stock options		10		77		—		58
Non-vested restricted Class B common stock		71		118		—		133
Diluted weighted-average number of shares		24,724		22,963		24,635		22,931

The following shares were excluded from the diluted earnings per share computation:

	Three Months Ended January 31,				Six Months Ended January 31,
	2018		2017		2018		2017
	(in thousands)
Stock options		1,160		3		1,273		18
Non-vested restricted Class B common stock		—		—		191		—
Shares excluded from the calculation of diluted earnings per share		1,160		3		1,464		18

In the three months ended January 31, 2018, and in the three and six months ended January 31, 2017, stock options with an exercise price that was greater than the average market price of the Company’s stock during the period were excluded from the diluted earnings per share computation.

In the six months ended January 31, 2018, the diluted loss per share computation equals basic loss per share because the Company had a net loss and the impact of the assumed exercise of stock options and the vesting of restricted stock would have been anti-dilutive.