Note 7— Earnings (Loss) 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 (loss) 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		24,675		23,054		24,649		22,845
Effect of dilutive securities:
Stock options		—		—		—		49
Non-vested restricted Class B common stock		—		—		—		95
Diluted weighted-average number of shares		24,675		23,054		24,649		22,989

The following shares were excluded from the diluted earnings per share computation:

	Three Months Ended April 30,				Nine Months Ended April 30,
	2018		2017		2018		2017
	(in thousands)
Stock options		1,253		273		1,253		20
Non-vested restricted Class B common stock		191		212		191		—
Shares excluded from the calculation of diluted earnings per share		1,444		485		1,444		20

In the three and nine months ended April 30, 2018, and in the three months ended April 30, 2017, the diluted loss per share equals basic loss per share because the Company had a net loss and the impact of the assumed exercise of stock options and the vesting of restricted stock would have been anti-dilutive. In the nine months ended April 30, 2017, stock options with an exercise price that was greater than the average market price of the Company’s stock during the period were excluded from the diluted earnings per share computation.