Note 11—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 January 31,				Six Months Ended January 31,
	2019		2018		2019		2018
	(in thousands)
Basic weighted-average number of shares		24,816		24,643		24,323		24,635
Effect of dilutive securities:
Stock options		—		10		—		—
Non-vested restricted Class B common stock		5		71		—		—
Diluted weighted-average number of shares		24,821		24,724		24,323		24,635

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

	Three Months Ended January 31,				Six Months Ended January 31,
	2019		2018		2019		2018
	(in thousands)
Stock options		1,243		1,160		1,243		1,273
Non-vested restricted Class B common stock		—		—		20		191
Shares excluded from the calculation of diluted earnings per share		1,243		1,160		1,263		1,464

In the three months ended January 31, 2019 and 2018, 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.

In the six months ended January 31, 2019 and 2018, the diluted loss per share computation 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.