Earnings Per Share

9 Months Ended

Apr. 30, 2016

Note 7—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,
	2016		2015		2016		2015
	(in thousands)
Basic weighted-average number of shares		22,635		23,034		22,790		22,867
Effect of dilutive securities:
Stock options		—		20		—		33
Non-vested restricted Class B common stock		45		414		26		359
Diluted weighted-average number of shares		22,680		23,468		22,816		23,259

The following outstanding stock options were excluded from the calculation of diluted earnings per share because the exercise price of the stock option was greater than the average market price of the Company’s stock during the period:

	Three Months Ended April 30,				Nine Months Ended April 30,
	2016		2015		2016		2015
	(in thousands)
Shares excluded from the calculation of diluted earnings per share		264		15		265		166