Basic and Diluted Net (Loss) Income Per Share

3 Months Ended

Jan. 31, 2024

Basic and Diluted Net (Loss) Income Per Share

Basic net (loss) income per common share is calculated using the weighted-average number of common shares outstanding during the period without consideration of the dilutive effect of conversion of preferred stock. Diluted net (loss) income per common share is calculated using the weighted-average number of common shares outstanding during the period plus the dilutive effect of unvested, restricted stock and conversion of preferred stock. The computations for basic and diluted net (loss) income per common share are as follows (in thousands, except per share data):


	Three Months Ended January 31,
		2024		2023
Basic net (loss) income per common share:
Net (loss) income applicable to common stock		$	(3,710)	$	15,506
Effect of unvested, restricted stock		(27)		(161)
Numerator: Net (loss) income for basic EPS		(3,737)		15,345
Denominator: Weighted average common shares–basic		17,627		17,573
Basic net (loss) income per common share		$	(0.21)	$	0.87

Diluted net (loss) income per common share:
Net (loss) income for basic EPS		$	(3,737)	$	15,345
Effect of dilutive preferred stock		—		125
Numerator: Net (loss) income for diluted EPS		(3,737)		15,470
Weighted average common shares–basic		17,627		17,573
Effect of dilutive preferred stock		—		805
Denominator: Weighted average common shares–diluted		17,627		18,378
Diluted net (loss) income per common share		$	(0.21)	$	0.84

Diluted net (loss) income per common share is computed using the more dilutive method of either the two-class method or the treasury stock method. Unvested stock-based compensation awards that contain non-forfeitable rights to dividends as participating shares are included in computing earnings per share. The Company’s unvested, restricted stock awards qualify as participating shares. Diluted net (loss) income per common share was calculated under the two-class method for the three months ended January 31, 2024 and 2023.