Net Earnings Per Share

9 Months Ended

May 31, 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 nine months ended May 31, 2017 and May 31, 2016:


	Three months ended				Nine months ended
	May 31,		May 31,		May 31,		May 31,
($ and shares in thousands, except per share amounts)	2017		2016		2017		2016
Numerator:
Net earnings	$	10,952	$	9,644	$	16,837	$	12,459

Denominator:
Weighted average shares outstanding		10,677		10,709		10,657		10,997
Diluted effect of stock awards		28		23		25		22
Weighted average shares outstanding assuming dilution		10,705		10,732		10,682		11,019

Basic net earnings per share	$	1.03	$	0.90	$	1.58	$	1.13
Diluted net earnings per share	$	1.02	$	0.90	$	1.58	$	1.13

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		Nine months ended
	May 31,	May 31,	May 31,	May 31,
(Units and options in thousands)	2017	2016	2017	2016
Restricted stock units	—	1	14	6
Stock options	101	104	123	84