Note 6—Earnings Per Share

Basic earnings per share is computed by dividing net income attributable to all classes of common stockholders of the Company by the weighted average number of shares of all classes of common stock outstanding during the applicable period. Diluted earnings per share is computed in the same manner as basic earnings per share, except that the number of shares is increased to include restricted stock still subject to risk of forfeiture and to assume exercise of potentially dilutive stock options using the treasury stock method, unless the effect of such increase is anti-dilutive.

The weighted-average number of shares used in the calculation of basic and diluted earnings per share attributable to the Company’s common stockholders consists of the following:

	Three Months Ended April 30,				Nine Months Ended April 30,
	2018		2017		2018		2017
	(in thousands)
Basic weighted-average number of shares		9,867		9,595		9,757		9,423
Effect of dilutive securities:
Stock options		—		—		—		—
Non-vested restricted Class B common stock		—		—		—		—

Diluted weighted-average number of shares		9,867		9,595		9,757		9,423

The following shares were excluded from the dilutive earnings per share computations because their inclusion would have been anti-dilutive:

	Three Months Ended April 30,				Nine Months Ended April 30,
	2018		2017		2018		2017
	(in thousands)
Stock options		1,366		1,431		1,366		1,431
Non-vested restricted Class B common stock		346		53		346		53

Shares excluded from the calculation of diluted earnings per share		1,712		1,484		1,712		1,484

For the three and nine months ended April 30, 2018 and 2017, the diluted earnings per share equals basic earnings per share because the Company incurred net loss during those periods and the impact of the assumed exercise of stock options and vesting of restricted stock would have been anti-dilutive.