Earnings per Share

6 Months Ended

Nov. 30, 2023

Earnings per Share

Earnings per Share

Note 11 – Earnings per Share

The computation of basic earnings per share is based on the weighted average number of common shares outstanding during each period. The computation of diluted earnings per share is based on the weighted average number of common shares outstanding during the period plus, when their effect is dilutive, incremental shares consisting of shares subject to stock options and shares issuable upon vesting of restricted stock awards.

In accordance with ASC 260-10-45, Share-Based Payment Arrangements and Participating Securities and the Two-Class Method, our unvested restricted stock awards are deemed participating securities since these shares are entitled to participate in dividends declared on common shares. During periods of net income, the calculation of earnings per share for common stock excludes income attributable to unvested restricted stock awards from the numerator and excludes the dilutive impact of those shares from the denominator. During periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company.

A reconciliation of the computations of basic and diluted earnings per share information for the three- and six-month periods ended November 30, 2023 and 2022 is as follows:

	Three Months Ended				Six Months Ended
	November 30,				November 30,
	2023		2022		2023		2022
Basic and Diluted Earnings Per Share:
Income from continuing operations	$	23.8	$	22.5	$	23.2	$	44.8
Less income attributable to participating shares		(0.3)		(0.3)		(0.3)		(0.6)
Income from continuing operations attributable to common shareholders		23.5		22.2		22.9		44.2
Income from discontinued operations attributable to common shareholders		—		—		—		0.4
Net income attributable to common shareholders for earnings per share	$	23.5	$	22.2	$	22.9	$	44.6
Weighted Average Shares:
Weighted average common shares outstanding - basic		34.9		34.2		34.9		34.6
Additional shares from the assumed exercise of stock options		0.4		0.5		0.4		0.4
Weighted average common shares outstanding - diluted		35.3		34.7		35.3		35.0
Earnings per share – basic:
Earnings from continuing operations	$	0.67	$	0.65	$	0.66	$	1.28
Income from discontinued operations		—		—		—		0.01
Earnings per share – basic	$	0.67	$	0.65	$	0.66	$	1.29
Earnings per share – diluted:
Earnings from continuing operations	$	0.67	$	0.64	$	0.65	$	1.26
Income from discontinued operations		—		—		—		0.01
Earnings per share – diluted	$	0.67	$	0.64	$	0.65	$	1.27

No stock options were determined to be anti-dilutive for the three- and six-month periods ended November 30, 2023.  The potential dilutive effect of 447,000 and 229,000 shares relating to stock options was excluded from the computation of weighted average common shares outstanding – diluted for the three- and six-month periods ended November 30, 2022, respectively, as the shares would have been anti-dilutive.