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Earnings (Loss) Per Share
 6 Months Ended
Jan. 31, 2021
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share

Note 12—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,		 
   2021   2020   2021   2020 
   (in thousands) 
Basic weighted-average number of shares   25,362    26,320    25,448    26,300 
Effect of dilutive securities:                    
Stock options   9    
—
    4    
—
 
Non-vested restricted Class B common stock   342    131    335    
—
 
Diluted weighted-average number of shares   25,713    26,451    25,787    26,300 

 

The following shares were excluded from the calculation of diluted earnings (loss) per share:

 

  

Three Months Ended
January 31,

  

Six Months Ended
January 31,

 
  

2021

  

2020

  

2021

  

2020

 
   (in thousands) 
Stock options    1,035    1,190    1,070    1,190 
Non-vested restricted Class B common stock    
—
    
—
    —    520 
Shares excluded from the calculation of diluted earnings per share    1,035    1,190    1,070    1,710 

 

In the three and six months ended January 31, 2021 and in the three months ended January 31, 2020, 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. The diluted loss per share equals basic loss per share in the six months ended January 31, 2020 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.