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Earnings (Loss) Per Share
 9 Months Ended
Apr. 30, 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
April 30,

   Nine Months Ended
April 30,		 
   2021   2020   2021   2020 
   (in thousands) 
Basic weighted-average number of shares   25,530    26,371    25,475    26,323 
Effect of dilutive securities:                    
Stock options   295    —    101    — 
Non-vested restricted Class B common stock   311    135    327    — 
Diluted weighted-average number of shares   26,136    26,506    25,903    26,323 

 

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

 

   Three Months Ended
April 30,		   Nine Months Ended
April 30,		 
   2021   2020   2021   2020 
   (in thousands) 
Stock options   —    1,126    713    1,126 
Non-vested restricted Class B common stock   —    —    —    520 
Shares excluded from the calculation of diluted earnings per share   —    1,126    713    1,646 

 

There were no shares excluded from the calculation of diluted earnings per share in the three months ended April 30, 2021. In the nine months ended April 30, 2021 and in the three months ended April 30, 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 nine months ended April 30, 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.