Earnings Per Share

9 Months Ended

Apr. 30, 2017

Note 8—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,
	2017		2016		2017		2016
	(in thousands)
Basic weighted-average number of shares		23,054		22,635		22,845		22,790
Effect of dilutive securities:
Stock options		—		—		49		—
Non-vested restricted Class B common stock		—		45		95		26
Diluted weighted-average number of shares		23,054		22,680		22,989		22,816

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

	Three Months Ended April 30,				Nine Months Ended April 30,
	2017		2016		2017		2016
	(in thousands)
Stock options		273		264		20		265
Non-vested restricted Class B common stock		212		—		—		—
Shares excluded from the calculation of diluted earnings per share		485		264		20		265

For the three months ended April 30, 2017, the diluted earnings per share equals basic earnings per share because the Company had a net loss and the impact of the assumed exercise of stock options and vesting of restricted stock would have been anti-dilutive. In the nine months ended April 30, 2017, and the three and nine months ended April 30, 2016, 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 periods.