Net Earnings Per Share

6 Months Ended

Feb. 29, 2020

Note 4 – 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, 2020 and February 28, 2019:

	Three months ended					Six months ended
($ and shares in thousands, except per share amounts)	February 29, 2020		February 28, 2019			February 29, 2020		February 28, 2019
Numerator:
Net earnings (loss)	$	5,516	$	(3,440	)	$	13,861	$	(2,228	)

Denominator:
Weighted average shares outstanding		10,825		10,786			10,810		10,776
Diluted effect of stock awards		32		—			33		—
Weighted average shares outstanding assuming dilution		10,857		10,786			10,843		10,776

Basic net earnings (loss) per share	$	0.51	$	(0.32	)	$	1.28	$	(0.21	)
Diluted net earnings (loss) per share	$	0.51	$	(0.32	)	$	1.28	$	(0.21	)

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
(Units and options in thousands)	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Restricted stock units		4		7		11		17
Stock options		12		74		6		55
Performance stock units		—		10		10		5