Net Earnings Per Share

6 Months Ended

Feb. 28, 2017

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.

The following table shows the computation of basic and diluted net earnings per share for the three and six months ended February 28, 2017 and February 29, 2016:


	Three months ended				Six months ended
	February 28,		February 29,		February 28,		February 29,
($ and shares in thousands, except per share amounts)	2017		2016		2017		2016
Numerator:
Net earnings (loss)	$	5,012	$	(4,129)	$	5,885	$	2,815

Denominator:
Weighted average shares outstanding		10,657		11,024		10,647		11,142
Diluted effect of stock awards		17		—		23		21
Weighted average shares outstanding assuming dilution		10,674		11,024		10,670		11,163

Basic net earnings (loss) per share	$	0.47	$	(0.37)	$	0.55	$	0.25
Diluted net earnings (loss) per share	$	0.47	$	(0.37)	$	0.55	$	0.25

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. In addition, 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 28,	February 29,	February 28,	February 29,
(Units and options in thousands)	2017	2016	2017	2016
Restricted stock units	7	3	20	9
Stock options	119	86	133	75