Net Earnings Per Share

9 Months Ended

May 31, 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 nine months ended May 31, 2021 and 2020:

	Three months ended				Nine months ended
($ and shares in thousands, except per share amounts)	May 31, 2021		May 31, 2020		May 31, 2021		May 31, 2020
Numerator:
Net earnings	$	17,797	$	10,094	$	36,768	$	23,955

Denominator:
Weighted average shares outstanding		10,907		10,835		10,879		10,818
Diluted effect of stock awards		126		42		88		36
Weighted average shares outstanding assuming dilution		11,033		10,877		10,967		10,854

Basic net earnings per share	$	1.63	$	0.93	$	3.38	$	2.21
Diluted net earnings per share	$	1.61	$	0.93	$	3.35	$	2.21

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. 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
(Units and options in thousands)	May 31, 2021		May 31, 2020		May 31, 2021		May 31, 2020
Restricted stock units		—		3		—		9
Stock options		—		115		28		42
Performance stock units		—		—		4		7