Net Earnings Per Share

6 Months Ended

Feb. 28, 2021

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, 2021 and February 29, 2020:

	Three months ended				Six months ended
($ and shares in thousands, except per share amounts)	February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
Numerator:
Net earnings	$	11,876	$	5,516	$	18,971	$	13,861

Denominator:
Weighted average shares outstanding		10,884		10,825		10,865		10,810
Diluted effect of stock awards		97		32		69		33
Weighted average shares outstanding assuming dilution		10,981		10,857		10,934		10,843

Basic net earnings per share	$	1.09	$	0.51	$	1.75	$	1.28
Diluted net earnings per share	$	1.08	$	0.51	$	1.74	$	1.28

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
(Units and options in thousands)	February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
Restricted stock units		—		4		—		11
Stock options		5		12		42		6
Performance stock units		3		—		6		10