Earnings per share

6 Months Ended

Apr. 30, 2019

Note 7 - Earnings per share

Basic earnings per share is computed by dividing consolidated net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing consolidated net income by the weighted average number of common shares outstanding increased by the effects of assuming that other potentially dilutive securities (such as stock options) outstanding during the period had been exercised and the treasury stock method had been applied. Potentially issuable securities totaling 121,015 and 475,105 shares for the three months ended April 30, 2019 and 2018, respectively, and 121,015 and 563,838 shares for the six months ended April 30, 3019, respectively, were excluded from the calculation of diluted per share amounts because of their anti-dilutive effect.

The following table summarizes the computation of basic and diluted weighted average shares outstanding:

	Three Months Ended April 30,				Six Months Ended April 30,
	2019		2018		2019		2018

Weighted average shares outstanding for basic earnings per share		9,356,660		9,053,838		9,332,665		8,965,672

Add effects of potentially dilutive securities-assumed exercise of stock options		481,304		332,356		505,053		279,053

Weighted average shares outstanding for diluted earnings per share		9,837,964		9,386,194		9,837,718		9,244,725