Earnings Per Share

12 Months Ended

Aug. 31, 2012

16.EARNINGS PER SHARE

Basic earnings per common share (EPS) is calculated by dividing net income or loss by the weighted-average number of common shares outstanding for the period. Diluted EPS is calculated by dividing net income or loss by the weighted-average number of common shares outstanding plus the assumed exercise of all dilutive securities using the treasury stock method or the “if converted” method, as appropriate. Due to modifications to our management stock loan program in prior periods, we determined that the shares of management stock loan participants that were placed in the escrow account are participating securities because they continue to have equivalent common stock dividend rights. Accordingly, these management stock loan shares are included in our basic EPS calculation during periods of net income and excluded from the basic EPS calculation in periods of net loss. The following table presents the computation of our EPS for the periods indicated (in thousands, except per share amounts):



YEAR ENDED
AUGUST 31,		2012		2011		2010
Numerator for basic and
diluted earnings per share:
Income (loss) from continuing
operations	$	7,841	$	4,807	$	(1,304)
Income from discontinued
operations, net of tax		-		-		548
Gain on sale of discontinued
operations, net of tax		-		-		238
Net income (loss)	$	7,841	$	4,807	$	(518)

Denominator for basic and
diluted earnings per share:
Basic weighted average shares
outstanding⁽¹⁾		17,772		17,106		13,525
Effect of dilutive securities:
Stock options and other
share-based awards		71		42		-
Common stock warrants⁽²⁾		517		399		-
Diluted weighted average shares
outstanding		18,360		17,547		13,525

EPS Calculations:
Income (loss) from continuing
operations per share:
Basic	$	0.44	$	0.28	$	(0.10)
Diluted		0.43		0.27		(0.10)

Income from discontinued
operations, net of tax, per share:
Basic and diluted		-		-		0.04

Gain on sale of discontinued
operations, net of tax, per share:
Basic and diluted		-		-		0.02

Net income (loss) per share:
Basic		0.44		0.28		(0.04)
Diluted		0.43		0.27		(0.04)

⁽¹⁾

Since we recognized net income for the fiscal years ended August 31, 2012 and August 31, 2011, basic weighted average shares for those periods includes 3.3 million shares of common stock held by management stock loan participants that were placed in escrow. These shares were excluded from basic weighted-average shares for the fiscal year ended August 31, 2010.

⁽²⁾	For the fiscal year ended August 31, 2010, the conversion of 6.2 million common stock warrants is not assumed because such conversion would be anti-dilutive.

At August 31, 2012, 2011, and 2010, we had 0.7 million, 0.7 million, and 0.5 million stock options outstanding (Note 12) that were not included in the calculation of diluted weighted average shares outstanding for those periods because the options’ exercise prices were greater than the average market price of our common stock or the options were otherwise unexerciseable. We also have 4.3 million common stock warrants outstanding at August 31, 2012 that have an exercise price of $8.00 per share (Note 9). These warrants, which expire in March 2013, and unexercisable stock options described above will have a more pronounced dilutive impact on our EPS calculation in future periods if the market price of our common stock increases.

- Definition

The entire disclosure for earnings per share.

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