Net Earnings Per Share

6 Months Ended

Feb. 29, 2016

Note 3 – Net Earnings per Share

Basic earnings per share is calculated on the basis of weighted average outstanding common shares. Diluted earnings per share is calculated on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options, restricted stock unit awards and other dilutive securities. When a period results in a net loss, the impact of outstanding stock awards is excluded from the diluted loss per share calculation as the inclusion would have an anti-dilutive effect.

The following table shows the computation of basic and diluted net earnings per share for the three and six months ended February 29, 2016 and February 28, 2015:


	Three months ended				Six months ended
	February 29,		February 28,		February 29,		February 28,
($ and shares in thousands, except per share amounts)	2016		2015		2016		2015
Numerator:
Net earnings (loss)	$	(4,129)	$	8,995	$	2,815	$	16,563
Denominator:
Weighted average shares outstanding		11,024		11,982		11,142		12,103
Diluted effect of stock awards		-		26		21		38
Weighted average shares outstanding assuming dilution		11,024		12,008		11,163		12,141

Basic net earnings (loss) per share	$	(0.37)	$	0.75	$	0.25	$	1.37
Diluted net earnings (loss) per share	$	(0.37)	$	0.75	$	0.25	$	1.36

Certain stock options and restricted stock units were excluded from the computation of diluted net earnings per share because their effect would have been anti-dilutive. Performance stock units are excluded from the calculation of dilutive potential common shares until the threshold performance conditions have been satisfied. The following table shows the securities excluded from the computation of earnings per share because their effect would have been anti-dilutive:


	Three months ended		Six months ended
	February 29,	February 28,	February 29,	February 28,
Units and options in thousands	2016	2015	2016	2015
Restricted stock units	3	2	9	6
Stock options	86	50	75	54